The new deal, expected to be officially announced Thursday, will pay Doan between $4.5 million to $4.6 million a season. Coyotes CEO Jeff Shumway, GM Mike Barnett and Doan's agent J.P. Barry made significant progress during contract talks Monday and Tuesday.
"From the outset, both sides have always said that our first priority is to remain together," Barnett told The Canadian Press earlier Wednesday. "The negotiations have been respectful and most recently have been productive."
Doan, 30, is earning $3.38 million this season and was slated to be an unrestricted free agent July 1.
The native of Halkirk, Alta., has played his entire 11-year NHL career with the Winnipeg/Phoenix organization. He leads the Coyotes with 19 goals in 48 games this season, while adding 16 assists. He had a career-high 30 goals in 82 games last season.