A shorter deal would allow Watson, who turns 25 in September, to capitalize on the current market and still be eligible for free agency in his late 20s, presumably to sign another lucrative deal.
Watson has two years left on his rookie contract and is in line for an extension projected around $38-40 million annually.
Watson, Super Bowl MVP Patrick Mahomes (also going into his fourth season), and Cowboys quarterback Dak Prescott are all looking to top Russell Wilson's record-setting $140 million contract, which Wilson signed in April 2019.
"I just felt like three years was better than four, just to give me another opportunity to get in the free market and just to go from there," Tunsil said in April. "I'll get to free agency around 28, 29, so I feel like that was the best opportunity for me.”