His contract will hold a $1 million base and $1.8 million in performance incentives.
Andersen, 36, is coming off a jaw-dropping Stanley Cup Playoffs performance after finishing with a 13-2 record, 1.89 goals against average, .910 save percentage, and a league-leading three shutouts.
Now, the long-time veteran will be entering his 12th season as he reunites with former Toronto Maple Leafs teammate Zach Hyman on an Oilers team desperate for a goaltender.
He finished the regular season with a 16-14-5 record in 35 starts with a 3.05 GAA and .874 save percentage.
Andersen had spent five seasons with the Hurricanes (2021-2025) after a three-year stint with the Anaheim Ducks (2013-2016) and Maple Leafs (2016-2020).
The two-time Jennings Award winner has a 324-149-58 lifetime record with a 2.59 GAA, .913 save percentage, and 28 shutouts.