The 27-year-old Talbot agreed to a $1.45 million deal for next season. He is earning $575,000 this season.
Talbot is 2-3-1 with a 2.34 goals-against average and two shutouts in seven games. He is the only NHL goalie with six starts or fewer to post two shutouts this season. He did it in back-to-back outings against Philadelphia in November.
In 28 NHL appearances over two seasons with the Rangers, Talbot is 14-9-2 with a 1.80 GAA and five shutouts. He is one of two players in Rangers history to earn at least five shutouts in his first 24 NHL starts.
He was signed by the Rangers as an undrafted free agent in 2010.