Financial terms were not disclosed, but Bob McKenzie of TSN reports it is worth $750,000.
"I think he's a player who, in a lot of ways, is at the crossroads of his career and has realized that he needs to really try to dig in here and re-establish his career," general manager Brad Treliving told the Calgary Sun. "We think it's a good fit, and ultimately the way the contract is structured, it’s a mitigated risk and there's some upside here. ... Just talking to him and spending some time with him, I think he's a motivated player."
Setoguchi, a native of Taber, Alberta, played last season for the Winnipeg Jets, with 11 goals and 16 assists in 75 games.
"We've got a lot of pride as hockey players, and, obviously, things didn't go the right way for me last year," Setoguchi told the newspaper. "It was tough for me to sit here all summer and watch things go on and everybody signing.
"[I've got] the chance to come in and prove I can still be the player that I once was before and have a lot of resiliency this year and have a bounce-back."
"I'm not a young guy anymore," Setoguchi said. "I've played close to 500 games, and the youth on the team provides a lot of energy. That's one thing I needed to find back in my game.
"I've been around the League a while, and I can teach them some things along the way, but being around that energy and that spark is something I needed; I think we'll push each other and help each other along the way."