McDavid, 20, has one season remaining on his three-year, entry-level contract. The first day he is eligible to sign an extension is July 1. He could become a restricted free agent after next season.
The extension was the top priority for the Oilers this offseason, general manager Peter Chiarelli said.
"The order of events, we can't officially sign Connor until July 1, but it's going to be Connor and then Leon Draisaitl]," Chiarelli said May 16.
[Tweet from @FriedgeHNIC: Further to @TSNRyanRishaug McDavid mention, hearing deal will be around $13.25M for 8 yrs. Big win for EDM to get that term, as opposed to 5
Draisaitl can become a restricted free agent July 1.
This season, McDavid led the NHL with 100 points (30 goals, 70 assists) and won the Hart Trophy as the most valuable player and the Ted Lindsay Award as the top player as voted by the players. He helped the Oilers finish second in the Pacific Division and reach the Stanley Cup Playoffs for the first time since 2006.
He had nine points (five goals, four assists) in 13 playoff games; the Oilers reached the Western Conference Second Round, when they were eliminated by the Anaheim Ducks.
McDavid has 148 points (46 goals, 102 assists) in 127 NHL games.
