The 24-year-old defenseman, who was a restricted free agent, avoided a salary arbitration hearing scheduled for Aug. 14.
"Vince is a mobile, puck-moving defenseman that can help generate offense from our blue line," Kraken general manager Ron Francis said. "He's a smooth skater that helps drive possession and plays a physical game."
Dunn, who was selected by Seattle in the 2021 NHL Expansion Draft, scored 20 points (six goals, 14 assists) in 43 games for the St. Louis Blues last season. He did not play in their four-game loss to the Colorado Avalanche in the Stanley Cup First Round.
Selected in the second round (No. 56) of the 2015 NHL Draft, Dunn has scored 102 points (32 goals, 70 assists) in 267 regular-season games and 11 points (two goals, nine assists) in 29 postseason games.
Dunn won the Stanley Cup with the Blues in 2019.
The Kraken also signed unrestricted free agent forward
Marcus Johansson
to a one-year, $1.5 million contract Friday. Johansson scored 14 points (six goals, eight assists) in 36 regular-season games with the Minnesota Wild last season. He did not have a point in three Stanley Cup Playoff games and sustained a broken arm during Game 3 of the first round against the Vegas Golden Knights on May 20.