"Max has developed into one of the key players in our organization," general manager Ray Shero said in a statement on the team's Web site on Friday. "He has shown his versatility and plays in all situations for our hockey club."
The 24-year-old has four goals and three assists in 28 games this season.
Last season, Talbot appeared in 63 games, posting career-highs with 26 points and 14 assists, while adding 12 goals and 53 penalty minutes. He scored a late goal to tie Game 5 of the Stanley Cup Finals at Detroit, which the Penguins won in triple overtime.
Talbot was selected by Pittsburgh in the eighth round, 234th overall, in 2002.
Information from The Associated Press and ESPN.com's Pierre LeBrun was used in this report.