The 39-year-old Jagr and former NHL MVP spent the past three seasons playing in Russia. This week he mulled over a one-year offer to rejoin the Penguins, his original team, before deciding to play on the other end of Pennsylvania.
The Flyers' deal is worth US$3.3 million. Jagr did not name the teams he said offered more money.
Jagr says he has an opportunity to play more with the Flyers and likes the moves general manager Paul Holmgren made over the last 10 days. Jagr says the addition of goaltender Ilya Bryzgalov was a reason for his signing.
Jagr was a Pittsburgh draft pick in 1990, and helped lead the Penguins to two Stanley Cup championships.