The deal will run through the 2012-13 season and has an average annual value of $2 million.

Kennedy set career highs last season with 21 goals and 24 assists for 45 points in 80 games. He added a pair of goals and an assist in Pittsburgh's seven-game, first-round playoff loss to Tampa Bay.

The 24-year-old Ontario native helped the Penguins capture the 2009 Stanley Cup title. He scored the winning goal in Game 6 of the Finals against Detroit, and finished the 2009 postseason with five goals and four assists in 24 games.

Kennedy has played in 266 games over his four-year career with the Penguins, scoring 59 goals with 65 assists for 124 points.