The native of Elk Point, Alta., agreed to an undisclosed deal with the team on Thursday. "I'm heading home to Alberta and I can't wait to step onto the ice at Rexall Place," Souray said in a release. "It's always been a terrific building to play in. I couldn't be happier with my decision and I can tell you it was an easy one to make.
"I'm looking forward to playing in Edmonton for a great organization and believe me, I know how good the fans in Edmonton are."
Souray is coming off a career season with the Montreal Canadiens in which he had 26 goals and 64 points.
His previous single-season bests were 15 goals and 39 points.
The 30-year-old spent six seasons in Montreal after starting his career in New Jersey. He was one of the top free-agent defencemen available this summer.
In 506 career games with the Canadiens and Devils, Souray has 186 points (66-120) in 506 games.