The Sabres announced the move on Wednesday, a day after general manager Tim Murray raised the likelihood of signing McCabe. Buffalo selected the 20-year-old in the second round of the 2012 NHL draft.
McCabe is coming off a season in which he earned first-team Big Ten honours with a career-best 25 points (eight goals, 17 assists) in 33 games.
Last year, he was captain of the U.S. team that won the gold medal at the World Junior championships in Russia.
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