"We are pleased that we were able to get the case settled," Phillies General Manager Ed Wade said. "It's our hope that we can continue to have an open dialogue with Kevin regarding him being a Phillie for a long time."
By reaching the agreement, the two sides avoided arbitration. Millwood had sought $12.5 million and the Phillies had offered $10 million, just over what he made last year.
The 29-year-old Millwood filed for free agency in October after going 14-12 with a 4.01 ERA in 35 starts for the Phillies last season. He tied for the National League lead with three shutouts, had five complete games and pitched a no-hitter.