The deal is a two-year, $2.8 million contract that carries an annual average value of $1.4 million against the salary cap, according to Pierre LeBrun of ESPN. Budaj was playing in the final year of a two-year, $2.3 million contract and would have become an unrestricted free agent in July.
In eight games this season, the 30-year-old goaltender has accumulated a 6-1-1 record with a 2.17 goals against average and .917 save percentage.
Budaj was originally selected with the No. 63 overall pick in the 2001 NHL Entry Draft by the Colorado Avalanche. After spending the entirety of his career with the Avalanche, he signed with the Canadiens as an unrestricted free agent in 2011.
In 267 career NHL regular season games, Budaj has collected a record of 112-99-33 with a .903 save percentage and 2.79 goals against average.