Carrasco, 28, will receive $22 million guaranteed from 2015 to 2018. The contract includes a $9 million team option for 2019 and a $9.5 million team option for 2020. The money tops out at $48 million over six years.
The right-hander has been with the Indians since 2009, when they acquired him from Philadelphia as part of the Cliff Lee trade. Last season he made 40 appearances, including 14 starts, and registered a 2.55 ERA and 0.99 WHIP in 134 innings.
Carrasco is set to make his first start of the season Wednesday night against the Houston Astros.
- Jeremy Woo