Daniel Graham is coming home, and not just to visit this time.

The former University of Colorado player, and, more recently, an object of a two-team bidding war in free agency, agreed to terms Tuesday night with the Broncos on a five-year, $30 million contract.

Graham, considered the top tight end available, will get $15 million in guaranteed pay.

The signing also makes Graham family reunions a two-Broncos event: Daniel's father, Tom, played linebacker for the franchise from 1972 to 1974.

Asked last week who would go down in team annals more famously should he sign with Denver, the younger Graham smiled and offered, "I would."

The Broncos had slugged it out with the Seattle Seahawks only a day earlier for the rights to free-agent defensive end Patrick Kerney and lost.

The addition of Graham gives the Broncos a player looked upon as one of the NFL's best blockers at his position. And along with the signing Monday of running back Travis Henry, it provides the week's second big upgrade in the Broncos' running game.

But Graham, who attended Thomas Jefferson High School, recently said he's more than a one-trick pony and wants to be more involved in the passing game. He has 120 catches in a five-year pro career since the New England Patriots drafted him in the first round in 2002, including 37 the past two seasons.

"We think he can be a factor in the passing game, obviously," Broncos assistant head coach/offense Mike Heimerdinger said. "But he's well-rounded. And I think our history is that we're able to get the ball to the tight end. So I think that intrigued Daniel besides coming home."

The move also leaves a murky future for last year's starter at tight end for most of the season, veteran Stephen Alexander. He's scheduled to make nearly $1.8 million on the salary cap in the final year of his contract.

Graham should play extensively in two tight-end sets with last year's second-round pick, Tony Scheffler, who was a downfield threat once Jay Cutler became the starting quarterback.

General manager Ted Sundquist was unavailable for comment. He has declined to speak to the media this offseason on any matters relating to current or future personnel other than on the team's Web site.

Graham, 28, met with the Broncos' front office on Friday and Saturday before flying to Oakland. He sat down with the Seahawks on Monday and Tuesday.

With Seattle's front office consumed with ultimately successful talks with Kerney, Graham took a red-eye back to his Boston-area home Monday night and Seattle put those talks off to the side.

But talks heated up with Seattle's initial offer Tuesday, prompting counter-offers from both suitors.

"There were very extended talks with both Denver and Seattle and it came all the way down to the end before a decision," said Graham's agent, Tom Mills.

"Seattle was very competitive all day. But in the end, Denver met every one of Dan's (criteria) . . . as far as the structure of his contract. But it was a long process and it took all day to get there. And that doesn't mean Seattle was being cheap. On a couple of components Dan thought were important, they were slightly under Denver."

Graham's deal with the Broncos moves him near the top of the list in salary among his peers. Kansas City's Tony Gonzalez re- signed with the Chiefs in January in a five-year deal that averaged $6.3 million a year and included a $10 million signing bonus.

Graham at $6 million a season is currently second in per-season average at his position, a tad higher than the annual payouts to the New York Giants' Jeremy Shockey ($5.3 million), Dallas' Jason Witten ($4.6 million) and San Diego's Antonio Gates ($4.4 million).

rasizerl@RockyMountainNews.com