Lundqvist, 31, is a five-time Vezina Trophy finalist and won the award as the top NHL goaltender in 2012 He's been the Rangers' most valuable player in seven of his eight NHL seasons.
TSN Canada said the deal covers seven seasons at $8.5 million a season.
"Since his arrival in New York in 2005, Henrik has consistently been one of the elite goaltenders in the NHL," Rangers General Manager Glen Sather said in a statement. "He is a proud representative of the tradition and class of this organization and we are excited to have him remain as a cornerstone of the franchise."
Lundqvist is 8-11-0 with a 2.51 goals against average this season for the Rangers. In 531 games, Lundqvist is 284-182-57 with a 2.26 GAA. He is fifth in shutouts and sixth in wins among active NHL goaltenders.
Lundqvist is second in wins and shutouts in Rangers history. He needs 17 wins to catch Mike Richter for the wins record and two shutouts to tie Ed Giacomin atop the shutout list.
He has been selected to the NHL All-Star Game three times and has career bests with 39 wins and a 1.97 GAA in 2011-12. His 24 wins tied for the NHL lead in the shortened 2012-13 season.