Financial terms of the contract were not released.
"It could be easier to be somewhere else with the transition they are undergoing, but I love it in Detroit, and I feel like I can help the younger guys," Green said. "You always weigh your options, but I wanted to get a deal done with Detroit. It was an easy deal to get done."
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The 32-year-old defenseman had 33 points (eight goals, 25 assists) in 66 games with the Red Wings last season but missed the final seven games because of a neck injury that required surgery. Green played in the NHL All-Star Game for the second time.
"He played the most minutes on our team. Skating is a strength for him, and in a League that is about speed and mobility that is an asset," Red Wings general manager Ken Holland said. "The plan is to slowly move some of the young players onto our team, and he gives us some depth. We're obviously trying to transition from older players to younger people but stay competitive."
The Washington Capitals selected Green in the first round (No. 29) of the 2004 NHL Draft. He has 464 points (142 goals, 322 assists) in 787 NHL games during 13 seasons with the Red Wings and Capitals, and 37 points (10 goals, 27 assists) in 76 Stanley Cup Playoff games.
