The 32-year old, three-time all-star was acquired from the Pittsburgh Pirates July 31. He hit .272 with eight home runs and 59 RBI for both teams combined last season.
A hamstring injury plagued him in the post-season, when the Tigers reached the World Series -- losing to the St. Louis Cardinals in five games.
"I think that Sean Casey will be a big part of our team in 2007," Tigers Manager Jim Leyland said on the team's Web site. "He is a tremendous teammate. You couldn't ask for a better combination of a person and player to retain in the Tigers organization. I look forward to having him for an entire season."
Casey is a .302 lifetime hitter, with 126 home runs and 664 RBI, in 1,193 games over 10 years with Cleveland, Cincinnati, Pittsburgh and the Tigers.
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