The two sides had been scheduled to attend an arbitration hearing on Aug. 4.
McLeod, who turns 24 in September, set new career highs with 11 goals and 23 points in just 57 games last season, his second full NHL campaign.
His previous contract was a one-year deal that paid him $798,000.
With McLeod now under contract, the Oilers will have a clearer understanding of their salary structure while they negotiate with restricted free-agent defenceman Evan Bouchard.
Bouchard, who took on more responsibility last season after the Tyson Barrie trade, is expected to get a significant raise from his entry-level contract.
PuckPedia reports that the Oilers have $4.28 million in cap space with 20 players on the roster.
August 1, 2023