The Stanley Cup champions announced the deal with Greene on Tuesday night.
Greene was limited to 38 games in the regular season, but the assistant captain returned to the lineup in the post-season and played in 20 games while the Kings won their second NHL title in three years.
A physical, stay-at-home defenceman who has been with Los Angeles since 2008, Greene struggled with injuries in the past two years. He has 69 points and 582 penalty minutes in 504 career games with the Kings and Edmonton.
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