Blanco appeared in 90 games for the Phillies this year and hit .253 with 15 doubles, four home runs and 21 RBIs. He made $1.45 million.
The 32-year-old led the Phillies with 15 pinch hits over the last two seasons.
Blanco first signed with the Phillies organization in March 2012. Philadelphia designated left-handed pitcher David Rollins for assignment to make room on its 40-man roster.