Raffl is due to earn $1 million in 2014-15 and $1.2 million in 2015-16, sources told ESPN.com's Pierre LeBrun.
The 25-year-old Raffl originally signed a one-year deal with the Flyers as an unrestricted free agent last May after playing eight years in Europe.
Raffl has recorded nine goals and 12 assists in 57 games this season while playing on all four lines. He has also proven a key contributor on the Flyers' penalty-kill unit.
Raffl had three points in four games as a member of Austria's team at the 2014 Sochi Olympics.