The 22-year-old defenseman was Boston's last remaining restricted free agent. Bruins defenseman Charlie McAvoy, who also missed the start of training camp as an RFA,
signed a three-year, $14.7 million contract
Sunday.
"I feel very blessed to be part of this city," Carlo said. "I love this city, love being part of everything here."
Carlo had 10 points (two goals, eight assists) in 72 regular-season games with the Bruins last season and four points (two goals, two assists) in 24 Stanley Cup Playoff games, helping them advance to the Stanley Cup Final before losing to the St. Louis Blues.
"I wouldn't want to be anywhere else," Carlo said. "Throughout this experience, especially last year, we have a lot of unfinished business that we have to get buttoned up here, and hopefully we can do that within my time in the next couple of years.
Selected by Boston in the second round (No. 37) of the 2015 NHL Draft, Carlo has 32 points (eight goals, 24 assists) in 230 regular-season games and four points in 24 playoff games.
"A big, big part of our club...a really important part of what we did and accomplished last year, what we hope to accomplish this year and many, many years going forward because that will be a part of this as well," general manager Don Sweeney said of Carlo.
"Very excited to bring him back in the fold."