Methot will receive $4.9 million in each of the four seasons of the contract. The Senators said the deal included a modified 10-team no-trade clause and that they were were prepared to trade him if a deal was not struck before the March 2 trading deadline.
In nine NHL seasons, Methot has 15 goals and 90 points in 414 games with the Columbus Blue Jackets and Senators.
This season, the 29-year-old has no goals and five assists for Ottawa and has missed significant time with lower back and hip injuries.
The Senators (22-22-10) are currently sixth in the Atlantic Division.
- Scooby Axson