LA Kings Insider reports the contract is worth $735,000.
Ellerby appeared in 44 games for the Kings and Florida Panthers last season, with three assists and 52 penalty minutes. The 24-year-old also played in five Stanley Cup Playoff games for Los Angeles.
The 6-foot-5, 221-pound native of Strathmore, Alberta was acquired by the Kings from the Panthers for a fifth-round pick in the 2013 NHL Draft on Feb. 8, 2013.
Ellerby has played in 160 games with the Kings and Panthers, recording 20 points (two goals) and 86 penalty minutes. He was drafted by the Panthers in the first round (No. 10) in 2007.