The O's didn't reveal the terms of the deal, but the Baltimore Sun reported it was for $88.5 million, which would eclipse the $72 million, six-year deal given to shortstop Miguel Tejada prior to the 2004 season.
Added performance incentives could bring the total to $91.5 million, the newspaper said.
The contract will keep Jones, a seven-year veteran, with the Orioles through the 2018 season. He had been working on a one-year contract this season after avoiding arbitration.
Jones last year set career highs in games (151), doubles (26), home runs (25) and runs batted in (83), and is batting .309 with 14 homers over 47 games so far this season for the American League East-leading Orioles.