Jordan Spence is closing in on a contract extension worth $20 million over four years, Sportsnet’s Elliotte Friedman reported on Friday.
Spence, 25, was set to hit restricted free agency as of July 1.
The right-shot defenceman is coming off a solid first season with the Senators in which he played 73 games while tallying seven goals and 24 assists.
Ottawa acquired Spence from the Los Angeles Kings last summer in exchange for third- and sixth-round draft picks.
For his career, Spence has 15 goals and 77 assists in 253 games between the two clubs.
The Australian entered the NHL as a fourth-round pick of the Kings in the 2019 draft.