The deal will pay Palushaj $600,000 on the NHL level or $175,000 on the American Hockey League level with a guarantee of at least $225,000.
"Aaron is still a young player and has some NHL experience under his belt," Hurricanes vice president of hockey operations Ron Francis said. "He has good speed and good hands and we believe he can push for a job in Raleigh come September."
Palushaj, 23, scored two goals and had seven assists in 25 games for the Colorado Avalanche in 2012-13.
The Livonia, Mich., native played 21 games with the Montreal Canadiens' AHL affiliate, Hamilton, prior to being acquired by Colorado on waivers Feb. 5, totaling three goals and 10 points.
The 5-foot-11, 187-pound forward, a second-round pick (No. 44) of the Canadiens in the 2007 NHL Draft, has three goals and 14 points in 66 NHL games with Montreal and Colorado.
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