The deal will pay Gregorius $14 million in 2020, according to Jim Salisbury of NBC Sports Philadelphia.
Earlier Tuesday, it was reported that Gregorius was considering signing a one-year contract with an eye on rebuilding his value for next year. The 29-year-old posted a pair of four-win seasons for the New York Yankees in 2017 and 2018, but slumped to a .718 OPS with 16 homers this past season. He only appeared in 82 games after offseason Tommy John surgery delayed his 2019 debut until June.
Gregorius did show flashes of his old self during the playoffs, hitting .400 with a homer and six RBIs during the Yankees' ALDS sweep of the Minnesota Twins.
In Philadelphia, Gregorius will be reunited with manager Joe Girardi, who managed him in New York for three seasons. Although he was drawing plenty of interest from other teams, including the Cincinnati Reds and Milwaukee Brewers, Gregorius' comfort level with Girardi ultimately pushed him to join the Phillies, according to C. Trent Rosecrans of The Athletic.
"I've always been a big fan of Didi and what he's been able to accomplish," Girardi said last week, according to Peter Botte of the New York Post.
Gregorius will presumably slot in as the Phillies' everyday shortstop, pushing All-Star Jean Segura to second base and Scott Kingery to third. Although he's primarily played short, the Dutchman has played 11 big-league games at second, though none since 2014.
The Gregorius deal continues a busy offseason for the Phillies, who inked Zack Wheeler to a five-year, $118-million deal last week, and they may not be done, either. The Phillies are expected to be in the running for both All-Star free-agent third basemen Josh Donaldson and Anthony Rendon, and they also continue to have interest in Madison Bumgarner.
Meanwhile, the Yankees showed no interest in re-signing Gregorius, according to SNY's Andy Martino.