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.