The 24-year-old forward was a restricted free agent and avoided a salary arbitration hearing scheduled for Friday.
Puljujarvi had an NHL career-high 36 points (14 goals, 22 assists) in 65 games for the Oilers last season and three points (two goals, one assist) in 16 Stanley Cup Playoff games.
"I think the one year was the best solution," Edmonton general manager Ken Holland said. "Jesse got off to a great start, then he kind of had a tough finish. I don't think either side really knows where he's at. And when you're in those kind of situations, it's easier to do a one-year deal than something with any kind of term."
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Selected by Edmonton in the first round (No. 4) of the 2016 NHL Draft, Puljujarvi has 98 points (46 goals, 52 assists) in 259 regular-season games, and five points (three goals, two assists) in 20 playoff games.
"I would say in Jesse's case, I'm comfortable if he's back," Holland said when asked if he's still looking to move Puljujarvi. "We're at the cap, and anything that we do is going to be dollar in, dollar out, so I'm still trying to figure out if there is anything out there that is going to make us better. I'm not 100 percent sure, but I'm happy to get him signed."
The Oilers (49-27-6) finished second in the Pacific Division last season and were swept in the Western Conference Final by the Colorado Avalanche. They signed forward Evander Kane (four-year contract), defenseman Brett Kulak (four-year contract) and goalie Jack Campbell (five-year contract) on July 13.
