Draper, who is earning $2.128 million this season, will make $1.85 million next season, $1.65 million in 2009-10 and $1.25 million in 2010-11.
"Kris has been such an important part of this organization's success during his 14-year career here," Wings GM Ken Holland said in a statement. "We are fortunate to have secured a player with his leadership qualities and work ethic for the next three seasons."
The 36-year-old is playing in his 14th season with Detroit and had five goals in 10 games. The Red Wings played later Friday in San Jose.
Draper began his career in Winnipeg before being traded to Detroit in 1993. He won the Selke Award as the NHL's top defensive forward in 2004.