The three-year deal, announced on Monday, has an average value of $2.1 million per season and will keep Cole with the Penguins through the 2017-18 season.
Pittsburgh acquired the 26-year-old Cole from St. Louis in March in exchange for defenseman Robert Bortuzzo.
Cole had one goal and seven assists in 20 games with the Penguins while averaging 18:28 of ice time. He posted career highs in goals (five), assists (12) and penalty minutes (51) in 74 combined games with Pittsburgh at St. Louis.
Cole was set to become a restricted free agent. The Penguins will likely be searching for depth at defenseman with veterans Paul Martin and Christian Ehrhoff expected to head elsewhere when free agency begins Wednesday.