The contract will pay Ward $2 million in 2007-08, $2.5 million in 2008-09 and $3.5 million in 2009-10.
"Cam is one of the cornerstones of our team moving forward," Hurricanes general manager Jim Rutherford said in a statement Thursday. "He has already built an impressive resume for himself at a young age, and we believe he is going to be one of the elite goaltenders in the National Hockey League for a long time."
Ward, 23, posted 30 wins this season with a 2.93 goals-against average and a .897 save percentage.
He also helped Canada to a gold medal at the IIHF World Hockey Championships earlier this spring in Russia, posting a 5-0 record with a 2.20 goals-against average and a .915 save percentage at the tournament.
As a rookie in 2005-06, Ward earned the Conn Smythe Trophy as the NHL's playoff MVP after leading the Hurricanes to the Stanley Cup championship.
Prior to turning pro, the Saskatoon native starred for the WHL's Red Deer Rebels.