The Islanders used a compliance buyout Wednesday to remove the final eight years of the goalie's deal from the club's salary cap.
New York will pay the 31-year-old DiPietro $1.5 million for each of the next 16 years — double the years left on his original 15-year pact with the Islanders.
The No. 1 pick in the 2000 draft, DiPietro has been limited to 50 NHL games since the 2008-09 season, plagued by multiple concussions and hip and knee injuries that required surgery.
In 318 career NHL games, all with the Islanders, DiPietro went 130-136-8-28. Only Billy Smith played more games in goal for New York. DiPietro was 2-7 in 10 career playoff appearances.