The Hurricanes announced the deal Thursday, exactly a year after that they acquired Teravainen in a trade with Chicago. He will earn $2.86 million in the 2017-18 and 2018-19 seasons.
Teravainen, 22, had 15 goals and 27 assists in 81 games last season, all career highs. He was also second among Hurricanes skaters with 15 power-play points.
In a statement, Carolina general manager and executive vice president Ron Francis said Teravainen is “an important part of what we are building here.”