"It's nice to have the contract kind of worked out and not have to worry about the arbitration process, which can be strenuous," Teahen said.
"They see me as part of the future. It's nice to have it all wrapped up and I can focus on baseball, and I'm looking forward to having the comfort of playing with a guaranteed contract, as well."
Teahen, 28, acquired from the Kansas City Royals on Nov. 6 for Chris Getz and Josh Fields, batted .271 with 12 home runs and 50 runs batted in last season for the Royals. He will play third base for the White Sox this season.
Teahen is a career .269 hitter in 676 career games, all with Kansas City from 2005-09. He was named the Royals Player of the Year in 2006 after establishing career bests in average (.290), home runs (18) and RBIs (69).
Teahen will earn $3.75
million next year, $4.75 million in 2011 and $5.5 million in 2012.
He had been eligible for free agency after the 2011 season.
Bruce Levine covers baseball for ESPNChicago.com. Information from The Associated Press was used in this report.