Carter and the Flyers agreed to an 11-year, $58 million contract extension, a source confirmed to ESPN.com
Carter, 25, was slated to become a restricted free agent July 1.
Carter, a center who plays the occasional wing, scored a career-high 46 goals two years ago and had 33 goals last season. He has eight goals and six assists in 16 games going into Saturday night's game against Florida.
"He's an integral part of the core of our hockey team," Flyers general manager Paul Holmgren said. "This took a little bit of time to get done, but we're happy to have it done. We look forward to seeing him score lots of goals for the next number of years."
Holmgren said the team began discussing the extension over the summer. It was completed on Friday night.
"Something always came up," Holmgren said. "It was never hostile at any point, it just took time to get done. I think some other issues in the league made us think about different ways of doing this -- number of years, custodial stuff."
According to the same source, Carter will make between $6 million and $7 million each season from 2011-12 to 2017-18. In the final four years of the deal -- 2018-19 to 2021-22 -- Carter will make between $2 million and $5 million each season.
This deal was announced five days after fellow forward Claude Giroux agreed to a three-year, $11.25 million contract.
Flyers captain Mike Richards is playing under a 12-year, $69 million contract signed during the 2007-08 season.
"It really says something about [Carter] as a player for this organization and what he has done," Flyers coach Peter Laviolette said. "Jeff has put up a lot of points. He's young and talented. He's a big guy that plays center ice for us."
Carter played in 286 consecutive games before his streak was ended on March 21, 2010, in Atlanta. During his streak, the third longest in Flyers history, Carter played in all 82 games in the 2007-08 and 2008-09 seasons.
"It's a great deal for him, our organization and our fans. It seems to be a good fit," Laviolette said.
The Flyers selected Carter with the 11th overall pick in the first round of the 2003 NHL Entry Draft.
During the 2008-09 season, Carter registered career highs in goals (46), assists (38) and points (84). He became the 13th player in team history to record 40 or more goals in a season and set a franchise record with five overtime points in a single season.
He won the Toyota Cup that season, which is given annually to the player who accumulates the most points in a formula associated with being selected as one of the Three Stars in a game.
Information from ESPN.com's Pierre LeBrun and The Associated Press was used in this report.