The contract includes a sixth-year club option worth $25 million and includes a $5 million buyout. It also buys out two years of Moncada's free agency.
Moncada, who was acquired by the White Sox in the trade that sent ace left-hander Chris Sale to the Boston Red Sox in 2016, has hit .266 with 50 home runs and 162 RBIs in three seasons with Chicago. He had a career season in 2019, hitting .315 with 25 home runs and 79 RBIs in 132 games.
Moncada would have been eligible for salary arbitration after this season and for free agency after the 2023 season.
Hoping to make the most of a painful rebuilding process, the White Sox have handed out several big deals to the prospects they accumulated during seven consecutive losing seasons.
Shortstop Tim Anderson agreed to a $25 million, six-year contract in March 2017. Young slugger Eloy Jimenez finalized a $43 million, six-year deal last March, and outfielder Luis Robert agreed to a $50 million, six-year pact in January. Key reliever Aaron Bummer got a $16 million, five-year contract last month that includes two club options.
Moncada made his major league debut with the Red Sox in 2016. He hit 17 homers and drove in 61 runs for the White Sox two years ago, but he also struck out a major league-high 217 times in 149 games.
The Associated Press contributed to this report.