Semin will get $7 million per season through 2017-18 after logging a breakout current campaign -- his first with Carolina -- during which he has racked up eight goals and 22 assists over 30 contests.
"We're very happy to retain Alex," Rutherford said. "Alex is an elite player and has been a major contributor to the Hurricanes having a very strong top line."
The 29-year-old Semin, who was labeled as talented but underachieving while playing with Washington, has amassed 205 goals and 233 assists through 499 career games with the Capitals and Hurricanes.
He also has registered 15 goals and 19 assists in 51 career Stanley Cup playoff games.