According to NFL Network's Ian Rapoport, the deal includes $7.25 million guaranteed, including a $2.75 million signing bonus.
The raise represents something of a redemption story for Peters—who missed the entire 2015 season after tearing his Achilles.
Since then, the burly run-stuffer has developed into an integral piece of the Cardinals' defensive line and has helped anchor the interior of a front-seven that ranks 10th in opponents' average rushing yards (100.4 per game).
Through nine games this season—an ankle injury has sidelined him for the Cardinals' last two tilts—Peters has recorded 17 total tackles and one sack.
"He's not just a nose tackle," head coach Bruce Arians said, according to Darren Urban of the team's official website. "He can penetrate and guys are getting sacks in the pocket because he's usually creating havoc having two guys block him."
And now that the Cardinals are preparing to square off against Todd Gurley and the Los Angeles Rams on Sunday without Peters, Arians admitted his team could be in a bit of trouble.
"We really miss him right now," he said Friday, per Urban. "He's been outstanding for us. A great leader and a heck of a player."