ESPN's Adam Schefter reported the contract is worth $12.9 million.
Crosby enjoyed a career-high 91.7 percent field-goal success rate (22-of-24) last year. He was a perfect 14-of-14 from 39 or fewer yards.
The 35-year-old out of the University of Colorado will be entering his 14th season in the NFL next year, all with Green Bay.
Crosby won Super Bowl XLV with the Packers in 2011, going 3-of-4 on field goals and hitting all 16 of his extra points in the postseason.
The signing does not come as a surprise considering that Packers general manager Brian Gutekunst told Mike Spofford of Packers.com that he wanted Crosby back.
"I think when you have a guy who has been through the fire like Mason has, for a guy in my position it makes us feel very comfortable," Gutekunst said. "He obviously had an excellent year last year. He's a big part of our team, a big part of what we're trying to do here. I'm very hopeful that will reach the right ending."
A veteran of 10 NFL postseasons, Crosby has shined when the lights are brightest, hitting 26 of 29 playoff field goals and all 65 of his extra points.
He notably drilled field goals of 56 and 51 yards in the final 1:33 of a 2017 NFC Divisional Round Game in a road upset over the Dallas Cowboys.
He's also been a reliable source of points for 14 years as he hasn't missed a game since the Pack picked him in the sixth round of the 2007 draft. Andy Herman of the Pack-A-Day podcast noted where he stands:
Crosby and the Packers will look to build off a 13-3 NFC North-winning campaign that saw the team reach the NFC Championship Game.