The deal carries a salary cap hit of $5.5 million.
The 30-year-old left wing’s previous contract carried a cap hit of $4.4 million.
The two-time Cup winner is just one year removed from his best season, statistically. In 2014-15, Ladd scored a career-high 62 points, helped the Winnipeg Jets into the post-season, and got nominated alongside the likes of Ryan Getzlaf and Jonathan Toews for the Mark Messier Leadership Award.
Ladd’s production dipped in 2015-16, but only slightly: 25 goals and 21 assists. He was a minus player for the first time in four years and spent time on the Jets’ third line before welcoming a return to Chicago as a rental player at the trade deadline.
“First and foremost I want to play for a team that has a chance to win,” Ladd told ESPN earlier this month. “I’ve kind of done the rebuild thing a little bit there in Winnipeg. At this point in my career I want a chance to win another Stanley Cup.
“And then, family-wise, just being in a good spot for my wife and kids, somewhere where they’re going to be happy and comfortable. I think those are the two most important things that I’m looking at.”