General Manager Glen Sather said Redden agreed to a six-year, $39 million deal.
Defenseman Mikael Rozsival re-signed with the Rangers and received a four-year, $20 million contract.
"Coming to New York is always an exciting thing," Redden in a conference call. "I've always been excited about the opportunity to play with an Original Six team. This is certainly a great opportunity for me, and I'm really excited about it. After playing against (Rangers Scott Gomez and Chris Drury) for a number of years, I'm looking forward to being on the same team with them, they're two great players."
The Rangers hope Redden will help boost the Rangers' low-scoring power play next season.
"(Redden's) the best first passer in the game today," Sather said. "He was someone we targeted immediately, our number one guy on defense."