The deal is worth $31.65 million with $17.5 million guaranteed, a source told ESPN. Ertz wanted to stay in Arizona and quickly received his wish, at $10.55 million per year.
Ertz, who turned 31 last November, made an immediate impact after his Week 6 deal. He had 574 of his 763 receiving yards in Arizona, catching 56 passes and three touchdowns as a Cardinal.
In the process, he tied the Cardinals' single-season record for catches by a tight end, doing it in just 11 games.
Ertz finished ninth in receiving yards among tight ends last season, his ninth in the NFL. Last year was the first time Ertz played a full season since 2018 and just the fourth time in his career.
He made $5.6 million last season, the last of a five-year extension he signed in 2016.
The three-time Pro Bowl selection had 579 receptions for 6,267 yards and 38 touchdowns in 123 games in nine seasons with the Eagles. Ertz, who caught the game-winning touchdown in Super Bowl LII, is ranked second in receptions, fifth in receiving yards and seventh in TD receptions in Eagles franchise history.
ESPN's Jeremy Fowler and Josh Weinfuss contributed to this report.