Goaltender Petr Mrazek agreed to terms on a two-year contract with the Detroit Red Wings on Wednesday.
Financial terms were not released, but Sportsnet reported Mrazek will make $3.85 million this season and $4.15 million in 2017-18, an average annual value of $4 million.
Mrazek, 24, who was a restricted free agent, was scheduled to have a team-elected arbitration hearing Wednesday in Toronto. The sides came to an agreement hours before its start.
"Obviously, it's good any time you can negotiate a settlement versus going through arbitration, where it's never a great process in building relationships with your players," general manager Ken Holland told The Detroit News. "It's not something that's motivating for the player and motivating for the club."
Video: Petr Mrazek signs a two year extension with Red Wings
Mrazek led Red Wings goalies in games played (54), wins (27), goals-against average (2.33), save percentage (.921) and shutouts (four) splitting time with Jimmy Howard last season.
"We have a good, young goalie in Petr, but he's still evolving," Holland told the Detroit Free Press. "Last year, he had a tough stretch at the end, and Jimmy Howard stepped in and won some games for us."
Howard, 32, will count almost $5.3 million against the NHL salray cap this season.
"Some teams have goalies that make $8 million, $7 million," Holland said. "We're on the higher end in terms of the money we've got in net (about $9.3 million), but we see goaltending as a strength for us."
In four seasons with Detroit, Mrazek is 46-30-8 with a 2.29 goals-against average, .920 save percentage and nine shutouts in 94 regular-season games (83 starts). He is 4-6 with a 1.88 goals-against average, .931 save percentage and three shutouts in 10 Stanley Cup Playoff games.
Red Wings defenseman Danny DeKeyser avoided arbitration scheduled for Thursday when he agreed to a six-year contract Tuesday. Detroit also avoided arbitration with goalie Jared Coreau, who signed a two-year contract on July 6.