According to the Flames, the contract is worth $832,500, which includes a signing bonus of $92,500 each year and an American Hockey League salary of $70,000 per year.
"Getting Sean signed prior to rookie camp and main camp has always been our priority and we are very pleased to have him in the fold," Flames general manager Jay Feaster said in a statement. "From our very first interaction with him, Sean has demonstrated a seriousness of purpose and a steadfast resolve to be the very best player he can be. His character and work ethic have continued to shine through in his preparation this summer."
After being selected by the Flames with the sixth pick in the 2013 NHL Draft on June 30 in Newark, N.J., Monahan spoke to NHL.com.
"I want to play, that's my goal," he said. "I want to play this year, and I think I can. I want to make an impact and I want to be a reliable player out there too. I don't want to be taken off my own end for faceoffs and stuff like that. I want to compete and be an impact."
Monahan recently completed his third season with the Ottawa 67's of the Ontario Hockey League. He posted consecutive 78-point seasons after scoring 31 goals and a career-high 47 assists in 58 games during the 2012-13 campaign.
"Not only is Sean a very good hockey player, but he is a great person as well," Feaster said. "He had a solid showing at our recent development camp, and as we shared with him afterward, we look forward to watching him play at our rookie tournament in Penticton [British Columbia] and then attempt to compete for a spot at main camp in Calgary [in September]."