Holtby will earn $1.7 million US next season and $2 million in the final year of the deal, at which point he would become a restricted free agent. The 23-year-old is currently in the final year of his entry-level contract, earning just over $600,000 per 82-game season.
"We are pleased to sign Braden to a contract extension," general manager George McPhee said in a statement. "Braden is a young and talented goaltender who has performed very well in both the regular season and the playoffs during his NHL career."
Holtby is 19-10-3 record with a 2.51 goals-against average, a .916 save percentage and four shutouts in 32 career regular season NHL appearances spread over three seasons with Washington.
The Lloydminster, Sask. native starred in the playoffs last season, recording a 1.95 average and . 935 save percentage in 14 games for the Capitals.
He spent three full seasons in junior with the Saskatoon Blazers, with Washington selecting him in the fourth round of the 2008 draft.
Washington also announced a two-year extension through 2014-15 for hard-hitting defender John Erskine.
The Kingston, Ont., native has recorded nine goals and 32 assists along with 452 penalty minutes in 294 career NHL games, all with the Capitals.
The 32-year-old will earn $1.925 million in 2013-14 and $2 million the following season.Suggest a correction