According to The Athletic, the new deal is for three years and $93 million with incentives which brings his average annual value to $31 million now rather than the previous $32.5 million.
He had two years and $65 million remaining on the seven-year, $215-million deal he signed in January 2014.
The two sides struck a deal Friday afternoon.
The offer is set at $17.9 million for one year, which is the mean salary of the 125 highest-paid players in the majors. He's a three-time NL Cy Young Award victor (runner-up twice) and a seven-time All-Star. I'm looking forward to proving a lot of people wrong with that. "I think from all of our standpoints we reached a point where focusing on the season and what we were trying to do was more important in all of our minds". "And myself personally, a chance to win every single year, it doesn't come around like this in LA very often".
Friedman said the "central theme" of the World Series disappointment was "how much we struggled offensively", which put the bullpen in a vulnerable position.More news: 2 dead after Amazon building collapse in severe weather
Shortstop Elvis Andrus, at 30 and already with the team 10 seasons, is halfway through a $120 million, eight-year deal that offered him the opportunity to become a free agent this offseason.
But Kershaw indicated that he had little interest in uprooting his family out of its in-season home or inking a longer contract. I'm not going to be as good as I once was.
Kershaw has a career 153-69 regular-season record with a 2.39 ERA in 318 games but it's in the postseason where his numbers drop.
A free agent can be made a qualifying offer only if he has been with the same team continuously since opening day and has never received a qualifying offer before. He went 9-5 with a 2.73 ERA over 161 1/3 innings in 26 starts.