There had been speculation that the team would have no choice but to use the franchise tag on the receiver, who led the team with 1,106 receiving yards and scored a team-high nine touchdowns.
If they did franchise him, the team would owe Jackson roughly $14 million this year.
Chargers head coach Norv Turner expressed an interest in locking Jackson up with a long-term deal (via NFL.com).
"We all agree that it’s been year-to-year and we’d like to avoid that," Turner said, "so certainly we’re looking to do something long-term."
Jackson was far and away the top receiver on the team in 2011. No other receiver had as many as 900 yards and tight end Antonio Gates' career appears to be in decline. Keeping Jackson on the team, one way or another, remains a priority for them.
For more on Jackson's situation, be sure to check out Chargers blog Bolts From The Blue.