The deal is worth at least $24 million and could reach $49 million with a pair of club options that could keep Lowe, 24, in Tampa through the 2026 season, sources confirmed to ESPN on Tuesday.
"It means a ton, the trust they have in my ability to go out and perform every day," Lowe said. "I want to do nothing else but show them that they made the right decision to want to make this deal."
The deal was first reported by The Athletic.
Lowe still qualifies as a rookie after having just 129 at-bats in 43 games last season. He hit .233 with six home runs, six doubles and 25 RBIs.
He made 24 starts at second base, 11 in center field and five in right field during the season.
"We believe Brandon has the potential to make a longstanding impact at the major league level," Rays senior vice president of baseball operations and general manager Erik Neander said in a statement. "He's shown both an advanced feel for hitting and the ability to drive the ball to all fields, and he's quickly becoming a versatile defender who can help us in many ways.
"Brandon's development, both offensively and defensively, is a testament to his commitment to his craft, and a credit to all of our staff who have scouted, coached and worked with him. With this agreement, we're excited to cement his place in our young core for years to come."