The Los Angeles Kings and coach Darryl Sutter have reached agreement on a multiyear contract extension, the team announced Friday.
A source confirmed to ESPN's Pierre LeBrun that the deal is for two years, with an option for a third year, at more than $3 million per season.
"I have lots of coaching left," the 57-year-old Sutter said Friday during a conference call.
The Kings won the Stanley Cup in 2012 and 2014 before missing the playoffs last season. They led the Pacific Division for most of this season before finishing one point out of first place. They lost to San Jose in five games in the first round of the playoffs.
Sutter is 186-112-45 in the regular season since being hired in December 2011. Re-signing him was the first major task faced by general manager Dean Lombardi this offseason. The Kings have six major unrestricted free agents, including forward Milan Lucic.
On Thursday morning, Sutter told the Los Angeles Times he intended to remain with the Kings.
"I'm under contract until July 1," he told the Times. "I have no desire to go anywhere else or do any of that. We'll get it worked out. That's my plan."
The Associated Press contributed to this report.