The Newsnight and University Challenge presenter has signed a four-year £3.2 million deal, reports the Daily Mail. It is believed that Paxman was getting £1 million-a-year under his previous contract.
Speculation about Paxman departing the BBC had been rife, with many sources suggesting that he wanted a new challenge following 21 years on Newsnight.
He also recently caused controversy by describing the show's daily email service as "crap" and an "exercise in fatuousness".
> Jeremy Paxman in on-air c**t slip