Vick was slated to earn about $16 million next season, including a $3 million roster bonus. He lost his starting job to rookie Nick Foles last season, but new coach Chip Kelly will give him a chance to win it back.
"I am grateful and proud to be a Philadelphia Eagle," Vick wrote on Twitter. "My heart is in Philly and this community is important to me."
Vick had a breakout year in 2010, leading the Eagles to the NFC East title, winning The Associated Press Comeback Player of the Year award and starting in the Pro Bowl. But he's battled injuries and inconsistency the last two years.
"What I look at is skillset first and foremost," Kelly said. "What he can do, how he can throw the football, how he can beat people with his feet. There are a lot of different factors he has. And you have to look at the landscape for other quarterbacks. I guess the best way I can put this is I agree there is a change of scenery going on here. For Michael Vick, there is a change of scenery, but not a change of address."
Vick has missed 11 games because of injuries over the last three seasons. He sustained a concussion in Week 10 last year and Reid decided to let Foles play the rest of the way because the Eagles were in last place. They finished 4-12.