As part of their blockbuster trade to acquire wide receiver Stefon Diggs, the Houston Texans wiped out the final three years on his contract, giving him the ability to become a free agent after this season, league sources told ESPN's Adam Schefter.

The Texans also took the $3.5 million guaranteed to Diggs next season and moved it up into this season, giving him a raise and assuring him of $22.52 million in guaranteed money in 2024.

The Texans acquired Diggs on Wednesday, sending a 2025 second-round pick (via the Minnesota Vikings) to Buffalo. Houston also acquired two draft picks: a 2024 sixth-round pick (No. 189 overall) and a 2025 fifth-round pick. The Texans acquired that 2025 second-round pick from the Vikings when they traded their 2024 first-round pick to Minnesota last month.

With the contract adjustment, the Texans now anticipate getting the best version of Stefon Diggs, who will be in position to negotiate another long-term contract next offseason.

A three-time captain with the Bills, Diggs signed a four-year, $104 million contract extension with the team in April 2022. The Bills will carry a dead money charge of $31.096 million next season after trading Diggs, according to Roster Management System. That will be the highest known dead money charge ever for a wide receiver in any season, according to ESPN Stats & Information research.

Diggs' production decreased following the first six games of the 2023 season. He did not have another 100-yard receiving game the rest of the season and only caught three more touchdowns. Over the Bills' final seven games of last season, including the playoffs, Diggs averaged 41.0 receiving yards per game and had zero touchdowns. It's the only time in Diggs' career that he has gone seven straight games without a touchdown.

Diggs, however, set a variety of team and league records during his time with the team, including being one of four players in NFL history to record four consecutive seasons with 100-plus receptions (Antonio Brown, Davante Adams and Marvin Harrison are the others).

Diggs is one of two receivers to be selected to the Pro Bowl in each of the past four seasons, along with Tyreek Hill.

ESPN's Alaina Getzenberg contributed to this report.