TSN reports the deal is worth $1.85 million, an average annual value of $925,000.
Orr played in 44 games this season, leading the NHL with 155 penalty minutes while adding one goal and four points. He dressed for all seven games in Toronto's first-round loss to the Boston Bruins in the Stanley Cup Playoffs.
The 31-year-old has played for the Bruins and New York Rangers during a nine-season NHL career. In 422 games, he has 12 goals, 24 points and 1,076 PIMs.