Lundqvist, who won the Vezina Trophy as the NHL’s top netminder in 2012, also holds the league record for most consecutive 30-win seasons to begin his career with seven.
“Since his arrival in 2005, Henrik has consistently been one of the elite goaltenders in the NHL,” Rangers general manager Glen Sather said in a statement released by the team.
“He is a proud representative of the tradition and class of this organization and we are excited to have him remain as a cornerstone of the franchise.”
After a slow start to this season, the 31-year-old Lundqvist has a 8-11-0 record in 20 games with a 2.51 goals-against average and .917 save percentage.
He would have become an unrestricted free agent next July.
Lundqvist, who's in his ninth NHL season, is a seven-time Rangers MVP and second on the club's all-time wins list with 284, 17 shy of Mike Richter.
The Swede's 47 shutouts are two behind Ed Giacomin's franchise-record 49. Lundqvist has a 2.26 GAA and .920 save percentage in 531 games.
He entered this season as the lone NHL goalie with an active streak of eight straight 20-win seasons.
Lundqvist's most productive season came in 2011-12 when the three-time NHL all-star established career bests in wins (39), GAA (1.97) and save percentage (.930).
In the playoffs that season, he posted career highs in games played (20), victories (10), shutouts and GAA (1.82).
Lundqvist is also a two-time Olympian, winning a gold medal with Sweden at the 2006 Winter Games in Torino, Italy.