Betts will earn $700,000 in both the 2010-11 and 2011-12 seasons, ESPN.com's Pierre LeBrun reported.
Betts and the Flyers agreed to the extension on Friday. The 29-year-old Betts has six goals and 10 points in 39 games in his first season with the Flyers. He missed 19 games due to injury.
"Blair has been a valuable addition to our team this year," general manager Paul Holmgren said in a statement. "He has a strong work ethic and plays an important role on our team. We are pleased to have him under contract for the future."
"I'm really happy with the new contract," Betts said in a statement. "It was exactly what I was looking for. I was glad that the Flyers were willing to give me a couple years and show some commitment to me."
Information from The Associated Press was used in this report.