Read, who had 11 goals and 13 assists in 42 games last season, is now under contract for five years. He led NHL rookies with 24 goals during the 2011-12 season.
"We're excited and happy we finally got it done," general manager Paul Holmgren said in a statement on Friday. "He's one of the young core players on our team."
Read originally signed with the Flyers as a free agent in March 2011 after his collegiate career at Bemidji State.
"I'm very happy about it," the 27-year-old Read said. "My first two years have been very overwhelming for me. It's still crazy to me to think I'm playing in the National Hockey League, so to sign my second contract with the Philadelphia Flyers is a dream come true."