Vick, 32, had been playing under a 10-year, $100 million agreement he signed in 2011. About $40 million of that deal was guaranteed. The Philadelphia Inquirer reported the new contract could pay Vick $10 million if performance goals are met.
Vick has been with the Eagles for four seasons, starting 35 games but often injured. That was under Coach Andy Reid, who was fired after last season and replaced by Oregon Coach Chip Kelly.
Vick and Nick Foles, who started six games as a rookie last year, will be competing for the starting position.
"There's an open competition," Kelly said.
"Michael knows that, Nick knows that. Both have outstanding qualities and both have started in this league. I know you have to have two quarterbacks in this league. "Who the starting quarterback is to start the season is going to be won on the practice field."
Vick played his first six NFL seasons with Atlanta but was sentenced to 19 months in prison for his role in a dogfighting ring. He missed two NFL seasons while in prison.