"Essentially, we worked together to get to that (NHL salary cap charge) and we are happy with it," Toronto general manager Kyle Dubas said. "I know Willy will be well worth that."
Nylander, who was a restricted free agent, would not have been eligible to play in the NHL this season if he did not sign before the 5 p.m. ET Dec. 1 deadline.
"I've spoken to William lots throughout the process," Dubas said. "I know he is very, very excited tonight and we are excited for him. It would've been a shame for him to not be in the NHL this year. He is a top young NHL player. We are excited to have him back and excited for him to get to work with our coaching staff and with our team."
The 22-year-old forward tied his NHL career high with 61 points (20 goals, 41 assists) last season, third on the Maple Leafs in points behind Mitch Marner (69) and Auston Matthews (63). Nylander had four points (one goal, three assists) in seven Stanley Cup Playoff games.
'In the end, we found a way," Dubas said. "… We have a cap situation this year which affords us the ability to structure it the way that we did and be able to compromise with William on what they wanted and also for us in the out years being a number as we planned with our team for us to become a consistent team that gets in the hunt and is contending year in and year out. That we could certainly fit that in and have him be a part of this for a long time, especially with the others on the horizon. That's the way we approached it and we didn't really stray from that.'
Marner and Matthews can each become a restricted free agent July 1.
Maple Leafs coach Mike Babcock said Nylander will be ready to play in the near future. He has been practicing with AIK in his native Sweden.
"Willy was ecstatic after," Babcock said after a 5-3 win against the Minnesota Wild. "He wants to be back here and we want him back here. It'll take us four or five days to get him in the lineup, but as soon as we can we'll get him in."
The Maple Leafs play at the Buffalo Sabres on Tuesday and host the Detroit Red Wings on Thursday.
Toronto, which is 19-8-0 in 27 games without Nylander this season, is in second place in the Atlantic Division, one point behind the Tampa Bay Lightning.
'I am happy for our team and I am happy for William," Dubas said. "I wish that we were able to get this done before training camp and that he was able to be a part of this. I think the team's record right now is a testament to the coaching staff and the players on the group. They haven't let this become a distraction. I totally understand the questions about It have picked up of late. They've continued to stay focused and they've had a great start to the season.
"I've learned a lot about the coaches and the players and their ability to do so. I am very thankful for them that they were able to perform the way they had. I am excited now to add William to the group because it will only make us better."
Toronto selected Nylander, the son of former NHL forward Michael Nylander, in the first round (No. 8) of the 2014 NHL Draft. He has 135 points (48 goals, 87 assists) in 185 NHL games and eight points (two goals, six assists) in 13 playoff games.
