Originally acquired by the Timbers on a one-year loan on Jan. 31, 2020, Mora tallied seven goals and two assists in 19 matches (13 starts) during the 2020 MLS regular season.
"We are thrilled to bring back Felipe long term as he is an accomplished international striker in the prime of his career," Timbers head coach Giovanni Savarese said in a release. "Felipe acclimated seamlessly into the group last year, and we can't wait for him to continue being a key contributor for the Timbers."
Mora's new contract uses targeted allocation money. Specific terms were not disclosed.
Mora, 27, tallied 19 goals in 65 appearances (50 starts) at Punas UNAM from 2018-20. That followed stints with Liga MX club Cruz Azul (2017-18) and with Universidad de Chile (2016-17) in the Chilean Primera Division.