The team announced via Twitter that Peters has added one year to his current deal that will keep him in Philadelphia through 2019.
NFL Network's Ian Rapoport reported Peters' contract now includes $15.5 million in guaranteed money and is worth up to $32.5 million over the next three years.
"It means a lot. This is reassurance that I'm going to retire here and don't have to go year to year. It's just another way of them reassuring that I'm going to be here," Peters said about his new deal, via Chris McPherson of the Eagles' official website. "I love Mr. [Jeffrey] Lurie, the whole organization, the City of Philadelphia and the fans. It speaks volumes for them to still look at me that way, it's nothing but love."
"I'm year-to-year," Peters said, per Matt Lombardo of NJ Advance Media. "I feel good. I may be able to go more than three years. I'm gonna keep going, chasing a ring."
Eagles executive vice president of football operations Howie Roseman said Peters "has been an anchor for our offensive line for many years, and now we are thrilled about being able to work something out that will allow him to finish his career here in Philadelphia," via McPherson.
Peters, 35, has spent the last eight years with the Eagles after beginning his career with the Buffalo Bills. He's made the last four Pro Bowl teams and his seventh overall in Philadelphia, likely on his way to a Hall of Fame career.
The Eagles could have kept Peters, who has shown signs of age, dangling by keeping him on a year-to-year deal. The final two years of his contract were non-guaranteed base salary, and Peters' main push for a reworked deal involved getting guaranteed money for job security.
"I don't want to be year-to-year doubting, are they going to release me? Are they going to do this? Taking pay cuts and all that. I just want to make sure that I got the reassurance that I'm going to retire here, don't have to worry about it, show up and show out," Peters said, per Tim McManus of ESPN.com.
Pro Football Focus ranked Peters as the eighth-best offensive tackle in football last season, so there's plenty of reason for him to want a new deal. But 35-year-old offensive tackles don't often continue playing at such a high level.
It may have been smarter in the long term to keep Peters under the terms of his original contract.