General manager David Poile announced the deal Saturday night, hours after the team and Arvidsson went to arbitration. Arvidsson will count $4.25 million against the salary cap through 2022-23 after a 45-point scoring improvement from 2015-16 in his first full season with the Predators.
Only Hart Trophy winner Connor McDavid (52) of Edmonton had a bigger scoring jump in the NHL last season.
Arvidsson tied linemate Filip Forsberg for the Predators' lead in goals, with 31, and matched center Ryan Johansen for the team lead with 61 points last season. He led all Nashville forwards with a plus-16 rating and led the league with five short-handed goals.
During the playoffs, Arvidsson had 13 points in 22 games during Nashville's run to the franchise's first Stanley Cup Final. The 24-year-old Swede has 39 goals and 38 assists for 77 points in 142 NHL games, all with the Predators.
This deal leaves Poile two restricted free agents left to sign: Johansen and forward Austin Watson.
Arvidsson was the 112th overall pick in the fourth round of the 2014 draft. He debuted with the Predators during the 2014-15 season and became the only player selected outside the first round of that draft to dress for an NHL game during that season. He led the Predators' rookies with eight goals and eight assists in 2015-16 and scored the game-winning goal to force Game 7 against San Jose in the 2016 Western Conference semifinals.