The Saints have invested heavily at tight end in the last month, signing Coby Fleener to a five-year contract and re-signing Michael Hoomanawanui to a three-year deal. Ben Watson, who received the bulk of the snaps at the position in 2015, left for the Baltimore Ravens.
Hill, 25, has spent three seasons with the Saints after signing as an undrafted free agent out of Idaho State in 2013. The Saints matched his offer from the Bears on Thursday.
Hill's new deal will run for three years. ESPN reported it could be worth up to $7.