Kendrick's deal includes a mutual option for 2021.
The 36-year-old veteran hit .344/.395/.572 with 17 home runs and 62 RBIs in 121 regular-season games in 2019.
Kendrick was a postseason hero for the Nationals during their World Series title run in 2019. First, his go-ahead grand slam in the 10th inning of the NLDS was responsible for eliminating the heavily favored Los Angeles Dodgers.
He followed his division-series heroics with an NLCS MVP performance against the St. Louis Cardinals, hitting .333/.412/.600 with four doubles and four RBIs.
In Game 7 of the World Series against the Houston Astros, Kendrick supplied another memorable moment. With Houston leading 2-1, he smacked a Will Harris pitch off the foul pole in right field to give the Nationals a lead they wouldn't relinquish en route to the franchise's first-ever championship.
Over his 14-year-career, Kendrick has hit .294/.337/.431 with 125 home runs, 350 doubles, and 710 RBIs. He's played for the Nationals, Dodgers, Los Angeles Angels, and Philadelphia Phillies.