The restricted free agent had a career-high 73 points in 79 games last season, his fifth in the NHL -- all with the Oilers. He also had 19 points in 24 games during Edmonton's surprise playoff run. Horcoff could have become an unrestricted free agent next summer.
"The Oilers are recognizing the hard work and leadership of Shawn by avoiding arbitration and bridging two years of free agency," Horcoff's agent, Pat Brisson, said from Los Angeles.
Horcoff will earn $3.6 million a year after making $1 million last season, making him the second-highest paid Oiler after goalie Dwayne Roloson, who earlier this summer signed an $11 million, three-year deal.