Millwood was one of several major leaguers to beat the arbitration deadline Friday, inking a one-year contract worth $9.9 million.
Millwood, who was acquired from the Atlanta Braves last month, made $3.9 million in 2002. The 28-year-old righthander was 18-8 with a 3.24 ERA in 34 starts for the Braves last season and is expected to head the Phillies' rotation in 2003.
"We're happy to get this done so quickly and hope it is the first step toward a long relationship," Phillies General Manager Ed Wade said.
Another player starting 2003 with a new team, Winn also avoided arbitration by signing a one-year deal with the Mariners. Financial terms of his pact were not disclosed but Winn made $960,000 in 2002, when he represented Tampa Bay in the All-Star Game.
"We're glad that we could get this worked out with Randy to avoid arbitration," Seattle General Manager Pat Gillick said. "We're excited about having him on our ballclub this season."
The 25-year-old Halladay, coming off a season in which he went 19-7 with a 2.93 ERA, agreed to a one-year, $3.825 million deal. He was in the final year of a three-year, $3.7 million contract.
Toronto also inked reliever Cliff Politte to a one-year, $845,000 deal.
St. Louis came to terms with its oft-injured outfielder J.D. Drew. Drew signed a one-year, $3.6 million deal after a season in which he was limited to just 424 at bats.
Boston's Trot Nixon, another talented left-handed hitting outfielder, agreed to one-year contract. He made $2.7 million in 2002, when he set career highs with 36 doubles, 94 RBI and 152 games.
The Red Sox also locked up another outfielder, signing Benny Agbayani, who was acquired by the team on Aug. 26.
Penny will earn $1.875 million next season while Almanza will make $775,000. Lee will be paid $4.25 million in a deal that includes a $50,000 All-Star bonus.
Houston locked up infielder Geoff Blum with a one-year, $1.5 million contract while the Braves, who are facing an arbitration hearing with ace Greg Maddux, signed catcher Henry Blanco to $1.3 million.
Notable deaths of 2014 [PHOTOS]