The 27-year-old was acquired by Orlando City from Sporting Kansas City in July for $900,000 in allocation money. That was an MLS record to add another player in the league, though the deal was later surpassed by Atlanta United's acquisition of Darlington Nagbe from the Portland Timbers in December.
"We are happy to have reached an agreement that both Dom and the club can be proud of," Orlando City general manager Niki Budalic said in a news release. "Bringing him here toward the end of the season was an ambitious move, and we are really pleased with how he adjusted and developed in the short months he had. Dom is a big part of this team and we are excited to see what he brings to the group this season and beyond."
The England-born Dwyer began his career in Norwich City’s system but came to the United States to play at the University of South Florida. He was taken No. 16 overall in the 2012 MLS SuperDraft by Sporting KC but ended up spending part of the 2013 season on loan with Orlando City — then of the third-tier USL-Pro. Dwyer would help the Lions win the 2013 USL-Pro title before also starting that year's MLS Cup final as Sporting KC triumphed over Real Salt Lake.
He went on to score 57 MLS regular season goals for Sporting KC and added one more in the playoffs.
Dwyer scored four goals in 12 games after his trade to Orlando last season. The forward has become a United States citizen and received his first U.S. national team caps in 2017, scoring two goals in four appearances.
He only had an option year on his contract remaining following the 2017 season, but this new deal removes any uncertainty around his status for the near future.
The Dwyer deal continued a busy day for Orlando, as the Lions earlier announced the acquisition of playmaker Sacha Kljestan from the New York Red Bulls in a three-player trade.