The 25-year-old Swede, who was a restricted free agent before the new deal was announced Wednesday, made $817,000 last season when he won 37 games - second most in one season by a Rangers goaltender since Mike Richter won 42 during the team's 1993-94 championship season.
Lundqvist ranked fourth in the NHL in minutes played (4,108), tied for sixth in shutouts (five), tied for eighth in wins (37), was eighth in goals-against average (2.34) and tied for ninth in save percentage (.917).
The 2006 Olympic champion was hot down the stretch. In his last 44 regular-season games, he had a 1.85 GAA, a .931 save percentage and surrendered two goals or fewer 33 times. He was named first star of the week twice last March and was a finalist for the Vezina Trophy for the second consecutive season.
In the 2007 playoffs, Lundqvist had a 6-4 record, a 2.07 GAA and a .924 save percentage in 10 games.
The six-foot-one, 195-pounder has more wins (67) in his first two NHL seasons than any goaltender in team history. He was the Rangers' seventh selection, 205th overall, in the 2000 entry draft.