Terms of the deal announced Wednesday were not disclosed.
Garland, 22, started the season with Tucson of the AHL and was called up when a string of injuries hit the Coyotes.
Garland has made the most of his opportunity, scoring 12 goals with three assists in 36 games. He is third on the team in goals and power-play goals with four.
Garland was a 2019 AHL All-Star after scoring eight goals with 11 assists in 18 games with Tucson.
He was originally drafted by the Coyotes in the fifth round of the 2015 NHL draft.