The Nationals finalized a pair of deals Wednesday, adding Murphy to the roster along with infielder Stephen Drew, who agreed to a $3 million, one-year contract.
Murphy's $37.5 million agreement calls for a $12 million salary in 2017 and $17.5 million in 2018, including $5.5 million deferred without interest. Washington owes $2.5 million of the deferred money on Jan. 15, 2019, and the rest on Jan. 15, 2020.
Murphy, 30, and the Nationals had agreed to the deal on Christmas Eve, pending a physical. Because of the deferred money, Major League Baseball evaluated its present-day value at $37,270,849.
Drew, 32, hit .201 with 17 homers and 44 RBI last season for the New York Yankees.
His deal includes the chance to earn up to $1.25 million in performance bonuses for games played: $150,000 for 80; $200,000 each for 90 and 100; $250,000 each for 110 and 120; and $200,000 for 130.
Murphy starred for the Mets in October, when he homered in a record six consecutive postseason games and was voted the MVP of the NL Championship Series. But he made key errors in the fourth and fifth games of New York's World Series loss to Kansas City.