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Cashner agreed to a deal for $7.15 million. He made $4.050 million last season after going 6-16 with a 4.34 ERA in a career-high 31 starts.
On Thursday, the Padres avoided arbitration with catcher Derek Norris and left-hander Drew Pomeranz.
Norris, who made $545,000 in 2015, agreed to a salary of $2.925 million for the upcoming season, his second with the Padres.
Pomeranz, obtained last month from the A's, will make $1.35 million this season after making $517,500 a year ago.
Corey Brock is a reporter for MLB.com. Keep track of @FollowThePadres on Twitter and listen to his podcast. This story was not subject to the approval of Major League Baseball or its clubs.