The New York Islanders have inked forward Simon Holmstrom to a two-year extension worth $3.625 million annually, industry sources tell The Hockey News.

After signing a one-year deal last offseason worth $850,000, Holmstrom has earned a well-deserved pay raise.

The 24-year-old took tremendous leaps this past season, setting career highs in goals (20), assists (25), and points (45), as well as average TOI (16:52).

While he was mostly limited to the third-line, GM Mathieu Darche is hopeful Holmstrom can earn a permanent spot in the Islanders top-six in 2025-26.

Holmstrom will be a restricted free agent upon completion of the deal.

PHOTO: Wendell Cruz-Imagn Images

Michael Ostrower contributed to this report.