After the injury of Bubba Franks, Lee gained more playing time. He finished the season fourth in receiving (1st among tight ends) for the Packers.
In November 2007, Lee signed a four-year contract extension with the Packers for $12 million. On November 18, 2007, Lee had the first multi-touchdown game of his career as he caught two touchdown passes from Brett Favre in a 31–17 victory over the Carolina Panthers. Lee also found the end zone in Favre's record setting day for "most passing yards" on December 16, 2007 vs. the St. Louis Rams. Lee finished the 2007 season with 48 receptions for 575 yards and six touchdowns. He also caught Favre's final touchdown pass as a Packer during the NFC Championship Game against the New York Giants on January 20, 2008.
On March 2, 2011, Lee was released by the Packers.