The deal came three days after Murphy and the team exchanged salary arbitration figures. They agreed in the middle after Murphy sought $6.5 million and the team offered $5.05 million.
Murphy hit .304 with 15 homers and 61 RBIs in 147 games last year. He was sixth in the AL with a .380 on-base percentage.
The Rangers acquired Murphy from Boston in 2007. He is expected to be the everyday left fielder this season.
Murphy is a .285 career hitter in 707 games since his major league debut with the Red Sox in 2006.