By retaining the speedy 6-foot-2, 195-pounder, the Steelers held onto their top cover cornerback. Taylor is regularly assigned to cover opponents' most dangerous wide receivers.
Taylor's five-year, $22.5 million contract had expired. And now the unrestricted free agent remains on the AFC North champion team's roster after registering 66 tackles, two interceptions and one sack last season.
He can sign the deal Friday night when NFL players are allowed to finalize agreements.
"I knew we'd do the right thing!" Steelers safety Ryan Clark wrote on his Twitter account. "Welcome back and congratulations my friend!"