The 30-year-old forward could have become an unrestricted free agent July 1.
"I'm very happy," Raffl said. "We've been working on this for a little bit now. I really like it here. This is the place I want to be and this has been my home, so I'm excited about the next two years. We have a young, exciting team and I'm happy to continue to be a part of it going forward."
Raffl has 18 points (six goals, 12 assists) in 61 games this season. Signed as a free agent May 31, 2013, he has 132 points (70 goals, 62 assists) in 406 games, and three points (one goal, two assists) in 19 Stanley Cup Playoff games.
"We're happy to have Michael for the next two years," Flyers general manager Chuck Fletcher said. "Throughout his six seasons with the Flyers he has played a pivotal role in a variety of positions and situations. His versatility, experience and work ethic will be valuable assets to our team going forward."
The Flyers (36-32-8) are eight points behind the Montreal Canadiens for the second wild card into the Stanley Cup Playoffs from the Eastern Conference with six games remaining. Philadelphia hosts the Toronto Maple Leafs at Wells Fargo Center on Wednesday (7 p.m. ET; SN, TVAS, NBCSP, NHL.TV).
