Katie Strang of ESPN.com reports the deal is for two years and $4.5 million -- Hagelin will receive $2.1 million for the 2013-14 season and $2.4 million in 2014-15.
The Rangers tweeted the following statement from Hagelin: "I am honored to be a part of the #NYR organization...I love the guys here and am excited to get going again next year"
Hagelin, 24, recently completed his second NHL season recording 10 goals and 24 points while playing in all 48 regular-season games for the Rangers. He added three goals and six points in 12 Stanley Cup Playoff games.
Hagelin has career totals of 24 goals and 62 points in 112 regular-season games, and three goals and nine points in 29 postseason contests.