The Phillies met second baseman Cesar Hernandez more than halfway, avoiding arbitration with a one-year, $2.55 million contract.
The Phillies had proposed $2 million, while Hernandez sought $2.8 million.
With this signing, the Phillies have cleared all of their arbitration cases.
Hernandez, 26, broke out in the second half last season, hitting .326 with a .421 on-base percentage over his final 365 plate appearances.
Overall, he hit .294/.371/.393 with a major-league leading 11 triples last season.
As a result, Hernandez is set to make nearly five times more than his 2016 salary of $525,000.
CSN Philly's Jim Salisbury contributed to this report.