Sanchez, a 28-year-old right-hander, signed a contract that is worth $80 million. The deal runs through 2017 and the Tigers hold a one-year option for 2018.
"Anibal pitched tremendously for us down the stretch and during the postseason," Tigers General Manager David Dombrowski said. "He strengthens our starting rotation and we are pleased to have him back with the Tigers organization."
Sanchez joined Detroit in July after a trade with the Miami Marlins. He was 4-6 with a 3.74 earned run average over 12 regular-season games and 1-2 with a 1.77 ERA in three playoff appearances.
Sanchez, a major leaguer since 2006, has a career record of 48-61 with a 3.75 ERA.