Alex Ovechkin is returning to the Washington Capitals for a 22nd NHL season.

Ovechkin signed a one-year contract with a $4.25 million average annual salary on Thursday. The contract includes a $1 million base salary, a $4.75 million bonus for playing 10 games and a $3.25 million signing bonus.

Ovechkin, 40, hadn't decided on whether to return to play another NHL season at the end of the season, which made retirement a real possibility. He's not retiring yet.

"I'm back," Ovechkin said in a statement. "Thank you to everyone for giving me and my family the time to make this decision. I'm healthy. I love playing hockey and competing to win. I'm excited to come back and join my teammates so we can fight for a playoff spot and have a chance to win. See you in September, DC."

The Capitals' longtime captain scored 32 goals and added 32 assists for 64 points in 82 games this past season. He's up to 1,573 games played, 929 goals and 758 assists for 1,687 points in his career.

Ovechkin also has 161 playoff games under his belt, with 77 goals and 70 assists for 147 points.

On top of winning the Stanley Cup and Conn Smythe Trophy in 2018, Ovechkin has won the Hart Trophy three times, the Ted Lindsay Award three times, the Maurice 'Rocket' Richard Trophy nine times and the Art Ross Trophy, Calder Trophy and Mark Messier NHL Leadership Award once each.

In 2024-25, Ovechkin broke Wayne Gretzky's record for the most regular-season goals in a career in NHL history with go No. 895.

Now, Ovechkin is 35 goals ahead of Gretzky, and he's only 11 goals away from breaking Gretzky's record for most goals in the regular season and playoffs. Gretzky has 1,016 goals in the regular season and playoffs, while Ovechkin has 1,006.

"We are excited to have Alex return and continue his illustrious career," Capitals owner Ted Leonsis said. "Ever since we drafted him, there have been two constants: his love for the game and his relentless drive to win. Alex has always shown a deep commitment to his teammates, this organization and the fans who have supported him throughout his career. I am incredibly proud of everything he has accomplished in a Capitals sweater, and I have no doubt he will continue to add to that legacy next season."

Earlier in the off-season, the Capitals acquired and signed right winger Alex Tuch to an eight-year contract worth $10.5 million annually, traded for right winger Jordan Kyrou and his $8.125-million cap hit for five more seasons, and signed center Boone to a four-year contract with a $5.75-million cap hit.

GM Chris Patrick still had enough space to re-sign Ovechkin, roster-wise and salary-wise.

"Alex has proven year after year that he can produce offensively and that he is still the driving force of our team," Patrick said. "We are excited about the additions we made this off-season to bolster our lineup and make our group more competitive. We believe that our roster is well balanced and will help create more opportunities for Alex to create offense and score goals."

The Capitals now have about $975,000 of cap space left, according to PuckPedia. The games played bonus means Ovechkin could earn up to $9 million, but bonuses are typically added to a team's cap hit after the season, with any bonus money over the cap carrying over to next season's cap hit.

"As we look ahead to next season, we are incredibly excited about the work our hockey operations group accomplished this summer to position our team to compete for a playoff berth and contend for the Stanley Cup," Leonsis said. "Our fans expect nothing less, and our organization has made the investments and difficult decisions necessary to build a new and exciting team."

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