MLive.com and the Macomb Daily report the deal is worth $1.85 million. Gustavsson made $1.5 million in 2013-14, the second year of a two-year deal.
Gustavsson has spent the past two seasons backing up Jimmy Howard in Detroit. He was 16-5-4 in 2013-14 with a 2.63 goals-against average and a save percentage of .907. He was 0-2 with a 2.71 GAA and a .917 save percentage against the Boston Bruins in the Stanley Cup Playoffs.
The 29-year-old Swede has a 57-52-20 career record in 141 games for the Red Wings and Toronto Maple Leafs. He was eligible to become an unrestricted free agent on July 1.
This team has been a real treat to say you've been the head coach of them. I'm extremely proud of this group ... after the disappointment of (the Game 6 loss) is digested, it's always a lot easier as a coach when your team has emptied its tank, and that team emptied its tank for me for three months.
— Senators coach Dave Cameron after getting eliminated in the first round by the Canadiens