Schilling, who had already cleaned out his Philadelphia locker Tuesday night, will join a pitching staff that features fireballing lefty Randy Johnson.
"There aren't many teams who have a couple of number ones on the roster on their pitching staff like we feel we do with Randy and Curt Schilling" Diamondbacks owner Jerry Colangelo said.
"This could be a very significant addition in a very tight pennant race."
In order to set up the best 1-2 pitching punch in baseball, Arizona sends first-baseman-outfielder Travis Lee and pitchers Omar Daal, Vicente Padilla and Nelson Figueroa to Philadelphia.
The second front-line starter, along with Denny Neagle, to be dealt in this summer's arms race, Schilling has rebounded from shoulder surgery with a 6-6 record and an earned run average of 3.91 this season.
He made only two starts in the final two months of the 1999 season due to shoulder surgery. He struggled at the beginning of the 2000 campaign but has thrown complete games in three of his last four starts and has an ERA of 2.00 in his last eight outings.
Schilling expressed regret at leaving Philadelphia.
"I will leave here with nothing but the best memories on and off the field," Schilling said during a news conference at Veterans Stadium in Philadelphia.
"I was booed so much less than I probably deserve to be booed here, which I don't think too many people leaving Philly can say."
Schilling will join an Arizona team that was in serious need of pitching help thanks to the struggles of Daal and an elbow injury to starter Todd Stottlemyre.
Stottlemyre is expected to be sidelined until at least September.
In 13 years in the major leagues, Schilling has amassed 105 wins against 89 losses, and an ERA of 3.41
And with his proven record, Schilling comes pretty cheap. He is signed for this season at $5.65 million US, and will take home $6.5 million US next year before becoming a free agent.
He had played with Philadelphia since 1992, serving as an integral part of the blue-collar Phillies' run for the World Series in 1993.
Jim Fregosi managed that Phillies team, a connection which sparked speculation that Schilling would be coming north.
But the strikeout master, who had a no-trade clause in his contract, expressed little interest on playing Canada.
He stated he would only waive the clause if the trade involved Arizona, St. Louis, Atlanta or one of the two New York-based teams.
The Jays can at least take consolation that Schilling did not become the latest prime acquisition by the free-spending Yankees.
The Phillies, a young team on the cusp of success, lose their ace but get four players who could help their cause.
Though Lee has had his problems at the plate this season, has has long been touted as a future star.
"Travis has struggled this year and I still believe that he has a very bright future," Colangelo said. "We'll be pulling for him."
Daal has a poor record of 2-10 and a 7.22 ERA this season, but he was a 16-game winner in 1999.
Padilla, pegged as a future starter, has had success coming out the pen this year.
And Figueroa, despite an 0-2 record with the D-backs this season, was considered one of Arizona's top pitching prospects.
"The reality of the deal is that we are giving up, obviously, one of the top starting pitchers in all of baseball," Phillies general manager Ed Wade said.
"In getting these four players, we answer a lot of needs. Did we get Curt Schilling back in this deal? Obviously we didn't."
