Aviles was acquired by the Blue Jays in exchange for manager John Farrell, but was quickly dealt to the Indians for Esmil Rogers.
Aviles, 31, has a .277 career batting average and has spent most of his time at second base and shortstop.
It is tough to find time for the infielder in Cleveland, as the team already has Asdrubal Cabrera at shortstop and Jason Kipnis at second base.
Aviles first broke through into the majors with the Royals, and was acquired by the Red Sox at the 2011 trade deadline. In 2012 he posted an OPS of .663 while playing the majority of his time at shortstop. Boston signed Stephen Drew to fill the void left by the loss of Aviles.
The Indians have not gone to arbitration since 1991, and this extension keeps that streak alive.