Terms were not disclosed by the team, but sources told ESPN.com that the Sixers and Holiday's camp agreed on a four-year, $41 million deal just before the league's midnight deadline that will take effect starting next season.
Holiday averaged 13.5 points and 4.5 assists a game last season.
The deal with the Sixers, sources said, includes incentives that could push the overall value of Holiday's contract to $46 million.
Holiday became the last member of the 2009 NBA draft class to secure an extension before Wednesday's midnight deadline. The Los Angeles Clippers' Blake Griffin signed a max extension in July and was joined this week by Houston's James Harden (five years, $80 million), Chicago's Taj Gibson (four years, $38 million), Toronto's DeMar DeRozan (four years, $40 million), Golden State's Stephen Curry (four years, $44 million) and Denver's Ty Lawson (four years, $48 million).