Palat, a finalist for the Calder Trophy awarded annually to the league's top rookie, signed a three-year contract, team vice president and general manager Steve Yzerman said. The agreement reportedly is worth $10 million.
The 23-year-old played in 81 games this season, scoring 23 goals and compiling 59 points. He was then named a finalist for the Calder, the winner of which will be announced June 24 in Las Vegas.
Palat was second in points among NHL rookie and third in goals.