The Predators had chosen not to pick up that option before the 2006-07 season and Poile said last week the move was to let everyone focus on the task at hand.
The Predators responded with 110 points and finished third in the NHL with a record 51 victories.
But Nashville finished with the No. 4 seed in the Western Conference and lost to fifth-seeded San Jose in the quarter-finals in five games for a second straight year.
Trotz is the only coach the Predators have had and he ranks 16th on the career list for most games (656) coached with the same team.
Hired in August 1997, Trotz is the second-most tenured head coach in the NHL, behind only Buffalo's Lindy Ruff.