The 25-year-old's deal has an annual average value of $5.5 million. He had asked for $6 million per year, while the Avs had countered at $4.125 million.
Barrie had 13 goals and 36 assists but was a minus-16 last season. He had 53 points and was a plus-5 the season before.
He was selected in the third round of the 2009 draft by the Avalanche.