The 36-year-old defensive end, whose contract was voided in a cost-cutting move in late February, told The Washington Times on Friday that he's going to re-sign within a week.
"We're working something out," he said. "I'll be a Redskin this year."
Daniels' one-year contract for the 10-year veteran minimum of $845,000 will count just $510,000 against the salary cap, as with fellow veterans Renaldo Wynn and Ethan Albright. Daniels had been due to make $2.15 million under his old deal.
"With my age and my injury, I understand where the Redskins are coming from," said Daniels, who missed all of last season after tearing the ACL in his left knee on the opening snap of training camp.
Daniels said his agent, Hadley Engelhard, heard from the Denver Broncos, Tennessee Titans and New England Patriots, but they all wanted to wait until after the draft to sign him. Since they didn't offer much more than the 10-year veteran minimum, Daniels decided it was either the Redskins or retirement.
"My son's going to be in 11th grade this fall, so I had to decide whether I wanted to be with him or keep playing," he said. "I decided that I didn't want to go out with that injury."
If Daniels had retired, his finale would've been the wild-card loss to Seattle in the playoffs after the 2007 season. Daniels began his career in Seattle in 1996 before moving to Chicago under defensive coordinator Greg Blache in 2000 for four years, then to the Redskins in 2004. He has never advanced beyond the divisional round of the playoffs, and he wanted one more shot at a title.
It didn't hurt that his buddy Wynn, who started at defensive end for the Redskins in 2004 and 2005, signed with Washington last week.
"I've been with Coach Blache for 10 years," Daniels said. "I know the system so well. The coaches all told me they wanted me back. I'm so close to so many of the guys. And now Renaldo's back. I don't know who's going to start [at left end]. I don't mind being a backup. I just want to win a championship."