The 26-year-old forward has 22 points (eight goals, 14 assists) in 40 games this season, his first with Washington after signing a one-year, $750,000 contract Oct. 16, 2022.
Milano could have become an unrestricted free agent after the season.
Selected by the Columbus Blue Jackets in the first round (No. 16) of the 2014 NHL Draft, Milano has 103 points (44 goals, 59 assists) in 237 regular-season games with the Blue Jackets, Anaheim Ducks and Capitals, and no points in four Stanley Cup Playoff games.
Washington signed forward Dylan Strome to a
five-year, $25 million contract
Friday.