Subban came off a two-year, $5.75 million contract and had his arbitration hearing Friday morning in Toronto. The two sides were able to come to terms on a new agreement before the arbitrator's ruling was to be made on Sunday.
"We are very pleased to have reached a long term agreement with P.K. Subban," said Habs GM Marc Bergevin. "This agreement helps consolidate the future of our team. A key element of our group of young veterans, P.K. plays with a high level of intensity every time he steps onto the ice. Despite his young age, he carries a great deal of experience and brings contagious energy to the team. Defensemen of his level are a rare commodity in the NHL."
Subban finished the 2013-14 season with a career-high 43 assists and 53 points, as well as 153 hits.
Drafted by the Habs in the second-round (43rd overall) of the 2007 NHL Entry Draft, Subban captured the Norris Trophy as the NHL's top defenseman in 2012-13 and won a gold medal at the 2014 Winter Olympics with Canada.