The Edmonton Oilers have signed Leon Draisaitl to an eight-year contract extension worth US$112 million, a deal that gives the German star the highest salary cap hit in NHL history at US$14 million.

The new contract begins with the 2025-26 season and runs through 2033. General manager Stan Bowman announced the extension on Tuesday.

"This is a historic day for the Edmonton Oilers," Bowman said. "Leon’s commitment to our team, our city and Oilers fans everywhere cannot be overstated. His desire to help bring a Stanley Cup title home to Edmonton is central to everything he does both on and off the ice."

Draisaitl and Connor McDavid helped the team reach Game 7 of the Stanley Cup final this past year. Draisaitl, the league’s MVP in 2020, was set to be an unrestricted free agent next summer.

Getting Draisaitl signed was the biggest task of the Oilers' offseason. Bowman was hired as GM in late July, weeks after being reinstated by the league office following a ban for his role in the Chicago Blackhawks 2010 sexual assault allegations.

Draisaitl surpasses Auston Matthews' US$13.25 million cap hit with this new contract, which nearly doubles his salary. The 28-year-old Draisaitl is making US$8.5 million on average on his current contract, which was signed in 2017 and became one of the most team friendly in the league.

The big forward from Cologne has been worth every penny, putting up 850 points in 719 regular-season games since making his NHL debut and being one of the top producers in playoff history with 108 in 74. Draisaitl's 1.46 points a game rank fourth all time among players with 40-plus games in the postseason behind Hall of Famers Wayne Gretzky and Mario Lemieux and McDavid.

With this contract done, the Oilers can turn their attention to re-signing McDavid, their captain, face of the franchise and reigning playoff MVP. He could be a free agent in the summer of 2026 and is eligible to sign a contract extension July 1. (AP)