Financial terms were not disclosed.
A six-time All-Star, Kariya led the Ducks last season with 32 goals and 57 points and topped all NHL left wingers with an average ice time of 22:12 per game. He is the team's all-time leader in numerous categories, including goals (275), assists (313) and games (524).
"Having our captain and team leader signed prior to training camp is very important for our club," general manager Bryan Murray said. "Paul's dedication and work ethic continue to make him one of the game's best players."
The 27-year-old Kariya was the first franchise pick in franchise history in 1993 and is the team captain.
"It's great to have the business out of the way, allowing me to focus solely on the upcoming season," Kariya said.
Kariya helped Canada win a gold medal at the 2002 Winter Games.