Malkin will earn $9.5 million US for each season through to the deal's 2021-22 expiration, the club announced.
Malkin, who turns 27 in July, will earn $7.5 million next season, with a cap hit of $8.7 million.
For comparison's sake, captain Sidney Crosby is under contract through 2024-25 under a front-loaded deal signed before the lockout. He earns $12 million US the next three seasons before his pay rate decreases, but the cap hit through the entirety of the deal is $8.7 million.
The Russian centre has gone over 100 points in three of his seven NHL seasons after being selected second overall in the 2004 draft. On two of those occasions, he was the league's leading scorer.
He won the Hart Memorial Trophy and Ted Lindsay Award winner as the NHL's top player as voted on by writers and players, respectively, after putting up 50 goals and 59 assists in 2011-12.
Malkin also earned the Conn Smythe Trophy as playoff most valuable player in 2009 when the Penguins captured the Stanley Cup, and he was named the Calder Trophy recipient as top rookie in 2007.
For his career, he's scored 217 goals and 343 assists for 560 points in 458 games. No stranger to the penalty box, he's compiled 462 penalty minutes.
The announcement came just a day after Ray Shero held his end-of-season media availability, with the Pittsburgh general manager offering no hint the Malkin pact was coming.
Malkin put up four goals and 12 assists in 15 playoff games this year, but like nearly all of the Penguins, was held off the scoresheet in the club's stunning four-game defeat to Boston in the Eastern Conference final.