General manager Ned Colletti said Thursday that Padilla's flexibility and willingness to fill whatever role the team needs him in was an important part of sealing the deal.
Padilla had a 6-5 record with a 4.07 ERA in 16 starts during an injury-shortened 2010 season, his first full one with the Dodgers. The 33-year-old right-hander was the club's opening-day starter last season.
Padilla went 4-2 with a 1.61 ERA in six home starts at Dodger Stadium. He tossed his fourth career shutout on Aug. 4 against San Diego.
He was originally signed by the Dodgers as a free agent in August 2009.