Veteran quarterback Vinny Testaverde has been reunited with old coach Bill Parcells by signing for the Dallas.
Initial reports indicated Testaverde would be joining the Cowboys as a back-up to Quincy Carter, but the 40-year-old will be competing for the starting job.
Dallas general manager Jerry Jones said: "We want to be better than we've been at quarterback and competition creates that.
"Vinny came here to play and he came here to compete as a starter. He knows he'll be given that kind of opportunity and that will make us a better team."
Testaverde signed a one-year contract with a $1.1m base salary and no signing bonus.
But the deal is laced with incentives, mostly centering on his playing time. According to Testaverde's agent, Michael Azzarelli, the quarterback could earn another $4m if he is the starter for most of the season.
As Testaverde enters his 18th NFL season, this will be his fifth different team in the league.
The 1987 No. 1 overall draft pick played his first six seasons in Tampa Bay, before moving to Cleveland for three years (1993-95). He stayed with the franchise that moved to Baltimore from (1996-97) before playing the last six seasons with the Jets.
Carolina head coach John Fox has signed a three-year contract extension after leading the Panthers the Super Bowl in his second year in charge.
Fox's agent Bob Lamonte said the final two years of his original four-year deal were replaced by a new five-year deal that runs through the 2008 season.
Cleveland have signed right tackle Ryan Tucker to a four-year contract extension through 2009. He was the Browns' only offensive player to start all 16 games last season.