Barrett, who on Dec. 7 accepted the team's arbitration offer, can earn an additional $750,000 in performance bonuses.
Barrett, who will serve as the backup to Josh Bard, joined the Padres in June after a trade with the Cubs. Barrett hit .226 in 44 games with the Padres, though he missed time in August with concussion-like symptoms.
Overall, Barrett hit .244 with nine home runs and 41 RBIs in 344 at-bats.
Barrett, 31, is a career .266 hitter. He became a free agent after the season and it initially looked as if he would sign with a different team, perhaps a multi-year deal.
But Padres general manager Kevin Towers said before the Winter Meetings in Nashville that he had a strong indication that Barrett would accept arbitration and come back in 2008.
Barrett's name has been mentioned regarding possible trades, though Towers indicated last week that he's inclined to hang onto him.
Corey Brock is a reporter for MLB.com. This story was not subject to the approval of Major League Baseball or its clubs.