Steen's four-year, $13.45 million contract expires June 30. He's earning just over $3.566 million this season and will now make an average of $5.8 million per year.
In 33 games with the Blues so far this season, Steen has picked up 22 goals and 14 assists for 36 points.
Steen originally didn't want to negotiate a contract extension during the season, but the Blues recently approached him, again, about a new deal.
"Alex prefers not to discuss a contract extension during the season and the team has respected that," Steen's agent, Jeff Kowall, told TFP on Nov. 30.
Negotiations on a new deal went smoothly and didn't take much time to finalize, a source close to the situation told TFP earlier today.
Steen scored a career-high 24 goals with the Blues during the 2009-10 season and picked up a career-high 31 assists and 51 points in 2010-11.
He was originally drafted 24th overall by the Toronto Maple Leafs in the 2002 NHL Entry Draft. The Leafs traded him and defenseman Carlo Colaiacovo to the Blues on Nov. 24, 2008 in exchange for forward Lee Stempniak.