Crosby's deal is worth $16.1 million, with a $5 million signing bonus, a source told ESPN's Rob Demovsky.
Crosby later tweeted that he is "so happy to be back."
— Mason Crosby (@crosbykicks2) March 2, 2016
Since his worst season in 2012, when he made just 63.6 percent of his field goals, Crosby has an 85.7 percent conversion rate. He made 24 of 28 field goal attempts last season, although one of his misses was a 52-yard try that would have won the game against the Lions in Week 10.
Crosby also made all four of his playoff attempts to set the NFL record for consecutive postseason field goals without a miss (20).
Crosby, 31, made back all of the money he could have lost when he took a pay cut in 2013 through incentives. His last contract, which averaged $2.45 million per season, made him the 14th-highest-paid kicker in the league.
Crosby has spent his entire nine-year career with the Packers, who drafted him in the sixth round in 2007.
ESPN Packers reporter Rob Demovsky contributed to this report.