His $5.125 million cap hit is lower than that of his previous contract, which was $6 million annually on a seven-year deal. His new contract also carries a no-movement clause. His prior deal had no trade protection.
Nugent-Hopkins, 28, has spent his entire 10-season career with the Oilers after they selected him first overall in the 2011 NHL draft.
He had 16 goals and 19 assists in 52 games this season, skating to a minus-4. Although he is considered a natural center, the Oilers have used Nugent-Hopkins on the wing with Connor McDavid and with Leon Draisaitl in recent years.
"I love being an Oiler. I always have. My goal has always been to stay an Oiler," Nugent-Hopkins said after the season. "It's something I've taken a lot of pride in for the last 10 years."