The new contract has Dahl's base salary reduced from $1.35 million to $825,000. There $365,000 of this money being guaranteed in 2014. His cap figure was trimmed from $1.883 million to $1.283 million.
Dahl signed a three-year contract last offseason when the 49ers lost Dashon Goldson in free agency. The veteran safety was a starter for the St. Louis Rams in 2012 while he competed for the position last training camp. Eric Reid eventually won the FS starting job with Dahl mostly spending time on special team coverage units.
The 49ers already restructured Jon Baldwin's contract last week and have continued to squeeze every bit of cap space they can save. Last August, the 49ers saved roughly $500,000 when they chose Kevin McDermott to be the long snapper over veteran Brian Jennings.
San Francisco has been in discussion with pending free agent Anquan Boldin, who could be re-signed within the next month. Another notable free agent includes starting SS Donte Whitner.
If Whitner ends up leaving for another team, Dahl could be in the mix to compete for the starting SS role.