Terms of the deal announced Tuesday were not released, but a person with knowledge of the contract told The Associated Press that it was worth just over $26 million.
Yandle, 24, has developed into one of the NHL's top defensemen in five seasons with Phoenix, a superb two-way player who was third among all blue-liners with 59 points in 82 games last season. The Boston native had 11 goals, led the Coyotes with 26 power-play points and was the team's lone representative at the All-Star game.
A restricted free agent, Yandle has 32 goals and 112 assists in 283 career games.
Also Tuesday, left winger Lauri Korpikoski filed for arbitration.