The deal is worth $25 million US, according to media reports.
The 26-year-old restricted free agent escapes the uncomfortable process of arbitration that was set for Monday.
Brassard notched a career-high 18 goals in 81 games last season for the Rangers. His 45 points ranked fourth on the team.
Brassard was selected sixth overall in the 2006 NHL draft by the Columbus Blue Jackets, who traded the Quebec native to the Rangers on April 3, 2013 in exchange for Marian Gaborik.
Brassard ranked fourth on the Rangers with 12 points during the team's Stanley Cup final run this past season.
This is the third time this month that the Rangers avoided arbitration with one of their players.
Forwards Chris Kreider (two years, $4.95 million) and Mats Zuccarello (one year, $3.5 million) both re-signed with the team.