Staal's deal is worth $6.5 million with an average annual value of $3.25 million. He was in the final season of a three-year, $10.5 million contract he signed July 1, 2016. He could have become an unrestricted free agent July 1.
The 34-year-old Staal has 41 points (18 goals, 23 assists) in 62 games with the Wild this season. He notched 42 goals last season, the highest total for the forward since recording 45 scores in the 2005-06 campaign.
The Carolina Hurricanes selected Staal with the second-overall pick in the 2003 NHL Draft. He has 963 points (413 goals, 550 assists) in 1,155 career regular-season contests with the New York Rangers, Hurricanes and Wild.
Staal has 46 points (20 goals, 26 assists) in 58 career postseason games and won the Stanley Cup with the Hurricanes in 2006.
The Wild also traded forward Mikael Granlund to the Nashville Predators on Monday. Minnesota obtained young winger Kevin Fiala in the deal.
Minnesota holds the final wild-card spot in the Western Conference with 66 points. The Wild visit the Winnipeg Jets on Tuesday night.