Makar's new deal holds a $20.4 million average annual value, just short of the league's $20.8 million maximum.
His contract will kick in next year when the 2027-2028 season begins.
"Couldn't be more excited to continue my journey here," said Makar in a social media post on the team's official page.
Hailed as the best defenseman in the NHL, the two-time Norris Trophy winner is coming off a 20-goal, 59-assist season with the Avalanche after putting up at least 90 points in the two previous years.
He was just one assist short of making it three straight seasons with at least 60 assists and has scored at least 20 goals in four of the five seasons he's been a full-time first-liner (post-COVID season).
Makar, 27, is the fastest defenseman in NHL history to reach 200 career points, doing so in just 195 games, and the fourth-fastest defenseman to reach 500 points.
The superstar is also the first player in NHL history to win the Norris Trophy, Rookie of the Year (Calder Memorial), Conn Smythe Trophy (Playoff MVP), and a Stanley Cup all before turning 24.
