The Phillies announced the deal on Tuesday. Kendrick's contract includes awards bonuses.
Kendrick went 11-10 with a 4.73 ERA in a career-high 33 games (31 starts) for the Phillies in 2010. His 11 wins last season tied his career high. He also set career highs with 180 2-3 innings and 84 strikeouts.
He's 35-24 with a 4.69 ERA in 93 major league games over four seasons.
The 26-year-old could likely serve as a spot starter and long reliever out of the bullpen.
Kendrick and outfielder Ben Francisco were the only arbitration-eligible Phils. Francisco inked a one-year, $1.175 million deal over the weekend to avoid arbitration.
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