The extension is worth $37.25 million guaranteed with a $14-million club option for 2023, a source tells Zack Meisel of The Athletic.
* - denotes club option with $3-million buyout
Cleveland signed Carrasco to a four-year, $22-million extension with an option while the starter was still eligible for arbitration early in the 2015 season.
Carrasco authored a 3.38 ERA and 2.94 FIP over 192 innings last year. It marked the second straight season in which he threw at least 190 innings and made 30 starts or more. He owns a 3.71 ERA and 3.33 FIP over his nine-year career.
The 31-year-old's name recently surfaced in trade rumors as the Indians reportedly explore trades for two-time Cy Young winner Corey Kluber, as well as Trevor Bauer and Carrasco. Cleveland's rotation has been the best in baseball over the past three seasons, according to FanGraphs, propelling the club to three consecutive first-place finishes in the AL Central.