The deal ends the prospect of free-agent chaos.
The free agency deadline is set to begin at midnight on Friday.
Reports say the salary cap will rise from $94.5m (£54m) to $102m for next season and rise to $109m in 2007.
Also, only the top 15 teams making the most money outside of television funds will contribute additional monies to the salary pool.
The NFL and the NFLPA (players' association) first agreed to free agency and a salary cap in 1992.
The agreement has been extended several times but this time players wanted to share all team revenues.
"It was really a tremendous effort by owners across the entire spectrum of the league," said Tagliabue.
"High revenue, low revenue everyone came together to reach consensus on a new formula for revenue sharing,"
