The team did not disclose financial terms.
The 23-year-old Nurse led Edmonton blue liners in 2017-18 with six goals and 20 assists in 82 games.
Nurse had said he wouldn't participate in training camp without a new contract.
The two-year "bridge deal" will keep Nurse in Edmonton until the team can free up some cap space and potentially sign him to a contract worth more money or for a longer term.
The Oilers opened their preseason Monday night in Calgary against the Flames.