Tillman's deal is worth about $3.5 million, according to ESPN.com's Adam Caplan.
Tillman, 33, earned just over $8 million last season. He had 41 total tackles, three interceptions and three forced fumbles. 'Peanut' also missed the last two months of the season after the team placed him on injured reserve with the designation to return with a torn right triceps.
"Charles is one of the NFL's great players and a true leader on and off the field and we're happy he will be staying in Chicago," general manager Phil Emery said. "He remains the best in our game at forcing turnovers and always has brought a tough, physical presence to our secondary. Charles also has a special connection to the people and community across Chicago and we're excited for that to continue."
MORE: 2014 NFL free agent tracker | NFL mock draft database: SI’s experts weigh in Tillman, the 2013 Walter Payton NFL Man of the Year award winner, is third in franchise history with 36 interceptions and is the only player since 2003 to record 40 forced fumbles and 30 interceptions.