Grubauer was one of the most effective backup netminders in the NHL in 2016-17, posting a 2.04 goals-against average, .926 save percentage, three shutouts and 13-6-2 record in 24 appearances.
The fact this is a one-year deal means the 25-year-old will again become an RFA at the end of the 2017-18 season.
Grubauer was drafted in the fourth round (112th overall) by the Capitals in 2010. He is 28-21-8 with a 2.25 GAA and .923 save percentage in his career
Many believed Grubauer would be selected by Vegas during the recent NHL Expansion Draft, however defenceman Nate Schmidt was the unprotected Capitals player the Golden Knights ended up choosing.