Bruce Levine of ESPN Chicago reports that Peavy turned down three-year deals worth $45 million in order to remain with the White Sox.
Peavy was healthy in 2012 for the first time since the 2007 season with the San Diego Padres. In 2012, Peavy started 32 games and finished with an 11-12 record with a 3.37 ERA and 194 strikeouts.
Peavy chose to stay with the White Sox because he believes that the team cares about each other and "that translates on the field in wins and losses."
Peavy won the 2007 NL Cy Young by going 19-6 with a 2.54 ERA and 290 strikeouts in 34 starts for the San Diego Padres.
The White Sox also picked up the $9.5 million option for Gavin Floyd. Floyd went 12-11 in 29 starts for the White Sox last season.