Terms of the deal for the restricted free agent weren't announced, but Canadian broadcaster TSN reported it was worth a total of $5.75 million, including $2 million this season and $3.75 million in 2013-14.
Subban sat out the first four games of the season as a new deal was being struck.
The 23-year-old has tallied 21 goals and 55 assists for 76 points in 160 games during his three-year career in Montreal.
Last season he notched seven goals and 29 assists in 81 games.
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