Gillis did not release specifics of the deal, which can't be officially signed until Sunday. The deal is reportedly for three years for $12 million US. Schneider earned $900,000 in 2012-13.
"Cory has displayed tremendous poise and professionalism since joining our organization," Gillis said. "He has proven himself as a leader on and off the ice and has shown an unwavering commitment to being the best at his position."
Schneider went 20-8-1 last season with three shutouts and a sterling .937 save percentage and 1.96 goals-against average in 33 appearances.
Schneider, a 26-year-old Marblehead, Mass., native, was given the assignment for Game 3 of Vancouver's first round playoff series against the Los Angeles Kings and played the subsequent two games as well.
As a result, speculation has swirled that longtime No. 1 Canucks netminder Roberto Luongo will eventually be moved before next season.
While the passing of the torch to Schneider has seemed inevitable since Vancouver lost to the eventual Stanley Cup champs, it is still a risky move.
Schneider has just one NHL playoff win to his credit and has played over 60 games in a season just once in his pro career, with Manitoba of the American Hockey League in 2009-10.
In the 2010-11 campaingn he was named co-recipient of the William M. Jennings Trophy with Luongo for allowing the fewest goals.
The Canucks selected him 26th overall in 2004 out of Boston College.
Gillis signed Luongo to a contract that runs through 2021-22, although the last few seasons of the deal have always seemed more symbolic than realistic. Still, the marathon deal has been an obstacle to trading him, with few teams in the market of a No. 1 goalie.
The 33-year-old also has a no-trade clause, though he may be forced to be more open-minded given the prospect of returning to the Canucks as a backup.