The deal was hammered out following a contentious weekend during which contract talks between the team and Zuccarello's camp broke off, which led to the Rangers briefly shopping the skilled winger, as first reported by ESPN.
The two sides resumed contract discussions Sunday with the intent of hammering out a deal. Zuccarello is believed to have taken significantly less than he originally asked for, north of $5 million per year on a five-year deal.
"It's where I want to be," Zuccarello said Monday after tallying two assists in a 4-1 win over Nashville. "I want to try to win with this team. This feels like home."
The current deal has an average annual value of $4.5 million per year and includes a full no-trade clause in the first year, but no trade protection in the final three years.
The Rangers made three trades earlier in the day, acquiring defenseman Keith Yandle from Arizona in a massive deal and making two depth moves afterward. New York dealt Lee Stempniak to the Winnipeg Jets and acquired James Sheppard from the San Jose Sharks in a separate deal.
Information from ESPNNewYork.com contributor Danny Knobler is included in this report.