Donovan's deal will be worth $650,000 at the NHL level and $162,500 at the American Hockey League level this season. Next season, Donovan's contract will pay him $700,000 at the NHL level and $200,000 at the AHL level.
The 28-year-old Donovan has six goals and six assists in 13 games for the Predators' AHL affiliate in Milwaukee. He leads the Milwaukee Admirals and is tied for 13th in the AHL in points.
Donovan was selected by the New York Islanders in the fourth round of the 2008 draft. He played a total of 67 games with the Islanders from 2011 to 2015.
He spent the past two seasons with Frolunda of the Swedish Hockey League.