The veteran centre signed a US$3-million, two-year contract extension Wednesday with the Los Angeles Kings. He had been slated to be an unrestricted free agent July 1 and was garnering interest from other NHL teams.
"Derek is a good player and he's a really good teammate," Kings GM Dean Lombardi told The Canadian Press. "It's nice to have got this done. Obviously if we hadn't, we would have been in a situation where we would have to look at (a trade) because of the asset.
"But this is guy we wanted to keep."
Armstrong, 33, has 39 points (9-30) in 54 games this season. His 30 assists are a career high. He also leads the Kings with a plus-16 rating.