Tweet from @Monahan20: Thank you Calgary #HOME pic.twitter.com/8vhgSaugcq
Monahan, 21, was second on the Flames with 27 goals, five game-winning goals, seven power-play goals and 63 points in 81 games last season.
Selected by the Flames with the sixth pick of the 2013 NHL Draft, he has 80 goals and 159 points in 237 NHL games. He has missed nine games in three seasons.
Monahan told TSN in July that he preferred a multiyear contract rather than a shorter bridge deal.
"I definitely want to be there for a long time," he said then. "So I would prefer a longer-term contract, but that's not up for me to decide. So I think I want to be there, I want to be in Calgary for the rest of my career, so that's something that I'm looking forward to doing."
Monahan and Johnny Gaudreau, 23, have been linemates for the past two seasons, and have combined for 112 goals and 267 points.
Gaudreau is a restricted free agent. He led the Flames last season with 30 goals and 78 points.
"If you're a high-end player and you're playing somewhere at a young age, that's where your heart is and that's where you want to win," Monahan said. "Our goal is to bring a Stanley Cup to Calgary, so if that's what it is, that we can bring other players in, to have a little extra money room and get them in to help us to be a better team, I think that's the idea."
Monahan will play for Team North America in the World Cup of Hockey 2016, which will be played at Air Canada Centre in Toronto from Sept. 17 to Oct. 1.
