Jagr, 43, will make $3.5 million in base salary next season, plus incentives. He was traded to the Panthers by the New Jersey Devils on Feb. 26, and had six goals and 12 assists in 20 games with Florida.
"Jaromir is a true professional in every sense of the word and a world-class player," Panthers owner Vincent Viola said. "This signing further shows our commitment to building a competitive and winning team in South Florida. In just 20 games, he has become a fan favorite and we look forward to his continued contributions to our organization."
A 21-year NHL veteran, Jagr's 1,802 points are fourth-most all-time and lead active players, as do his 1,550 games played,1,080 assists, 722 goals, +291 plus/minus and 204 power-play goals.
The Panthers finished 38-29-15 with 91 points, missing the playoffs for the third straight year.
- Mike Fiammetta