Ryan will make $7.25 million per season under terms of the new deal. He is scheduled to make $5.1 million this season.
Last season was the 27-year-old's first year with the Senators. He had 23 goals and 25 assists last season for Ottawa and finished fifth on the team with 48 points.
Ryan spent the first six seasons of his career with the Anaheim Ducks after he was selected with the No. 2 pick in the 2005 draft. During his seven-year career, he has scored 170 goals and notched 167 assists.
On Thursday, the Senators also named 24-year-old defenseman Erik Karlsson team captain.
The Senators finished last season 37-31-14 and missed the playoffs by five points. They open the regular season Oct. 9 on the road against the Nashville Predators.
- Paul Palladino