The Windsor, Ont., native was scheduled to become an unrestricted free agent. Colorado did not release financial details for Wilson, who earned $1.275 million US the past season.
Wilson notched a career high 20 assists to go along with one goal and a plus-11 rating.
The 25-year-old has spent three seasons with the Avalanche, playing between 59 and 67 games each season.
The six-foot-one Wilson went undrafted after a five-year OHL career that saw him compile 259 points.
He was signed by Calgary as a free agent and traded in the deadline deal in 2009 that saw Jordan Leopold return for a short-lived second stint with the Flames.