Gill, 37, would have been an unrestricted free agent July 1.
Predators general manager David Poile acquired Gill from the Montreal Canadiens this past season, one of his first aggressive moves at the trade deadline.
Gill might have been the most effective of all of the Predators' midseason additions until he was injured.
Among Nashville defensemen, only Shea Weber and Ryan Suter consistently faced tougher competition this past season than Gill, and his addition on the penalty kill freed up the Predators' stars for other duties.
Gill played with a fractured leg during the playoffs, showing incredible toughness, winning over teammates and the coaching staff. The injury limited him to just 15 minutes per game in five playoff contests.
Gill finished with five assists in 23 games for the Predators after collecting a goal and seven assists in 53 games with the Canadiens.