The 33-year-old has spent his entire 10-season career with the Senators, recording 90 goals and 110 assists along with a franchise-leading 1,861 penalty minutes.
The Flesherton, Ontario, native had 13 goals and 15 assists in 72 games last season.
Neil became just the fourth Ottawa player to appear in 700 games on Jan. 21 in Anaheim.
Neil was selected 161st overall by the Sens in the 1998 NHL draft.
Copyright 2012 by The Associated Press
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