Nick Leddy and the Islanders have agreed to terms on a seven-year deal, keeping the defenseman with the team through the 2021-22 season.
The deal is worth $38.5 million, with a $5.5-million average annual value, Newsday's Arthur Staple tweeted.
"Nick has proven to be an elite defenseman in this league at a young age," Isles GM Garth Snow said in a statement. "He's the type of player on the ice, in the locker room and in the community that we're thrilled to add as a cornerstone of our defensive core."
Leddy was 25 points this season -- eight goals, 17 assists -- and a plus-12 rating in 61 games. Leddy, 23, was acquired by the Islanders in a trade with the Chicago Blackhawks on Oct. 4.
"We have something special in this locker room and I'm excited to be a part of it for seven more years," Leddy said. "From the start of my time here, the Islanders have been a first-class organization. I'm honored by their commitment to me and look forward to challenging for the Stanley Cup for years to come."