The deal carries an average annual value of $800,000. The Toronto native decided to take a hometown discount as he was in the final year of a six-year $40.5 million contract that had a cap hit of $6.75 million.
The 38-year-old finished last season with the Leafs after arriving from the Seattle Kraken ahead of the NHL trade deadline. The Leafs sent two second-round draft picks and a third-round selection to the Kraken for Giordano and forward Colin Blackwell.
In 75 games last season, Giordano had eight goals and 35 points with Toronto and Seattle while adding two points in seven games against the Tampa Bay Lightning in the first round of the Stanley Cup Playoffs.
Giordano signed with the Calgary Flames as an undrafted free agent in 2005 and spent the first 15 years of his NHL career with the club before getting selected by the Kraken in the expansion draft. During his time in Calgary, he was the captain for eight seasons, won the Norris Trophy in 2019 and was named an All-Star on three occasions.
Through 1,024 career NHL games, the veteran defenceman has recorded 151 goals and 544 points.