No terms of the deal were released, but the Denver Post reported the value of the contract at $2 million.
"Over the years, Milan has been an instrumental part of our organization's success," Avalanche General Manager/Executive Vice President Greg Sherman said. "He has represented this franchise with class and will continue to complement the young nucleus of players we have been building this team around."
Hejduk, 36, had just 14 goals and 37 points in 81 games in 2011-12 The goals are the fewest he's scored in a season since he was a rookie in 1998-99, and the 37 points are the fewest he's ever had in a season.
The scoring downturn snaps a streak of 11 straight seasons with at least 20 goals, including a League-high 50 in 2002-03.
Hejduk, a fourth-round pick of the Quebec Nordiques in 1994, has played all 13 of his NHL seasons with the Avs. He's fourth on the team's all-time scoring list with 371 goals and 794 points. He's second only to franchise icon Joe Sakic in games played with the team at 991.
He's also second all-time among Czech Republic-born players in goals, and third in points. He trails only Jaromir Jagr in goals, and Jagr and Patrik Elias in points. Barring injury, next season he'll become just the ninth Czech Republic native to play 1,000 NHL games -- but only the second, along with Elias, to do it with just one team.
"My family and I are very excited to continue my career here in Denver," Hejduk said. "I believe in this organization and our young players and look forward to helping the team in any way that I can."
Contact Adam Kimelman at firstname.lastname@example.org. Follow him on Twitter: @NHLAdamK