The 21-year-old played in just 58 games last season as he dealt with knee and ankle injuries. He had 14 goals and 14 assists.
Duchene had his first career hat trick Nov. 4 at Dallas, becoming the first Avalanche player to record that feat before his 21st birthday since Radim Vrbata in 2001-02.
A dynamic forward, Duchene was drafted third overall in 2009. He made the All-Star team in 2010-11 and became the youngest player in franchise history to lead the squad in scoring.
After Saturday's signing, the Avs face big decisions on other restricted free agents such as leading scorer Ryan O'Reilly, who was drafted the same year as Duchene.