The Winnipeg Jets and forward Nikolaj Ehlers agreed to a seven-year, $42 million US contract extension on Wednesday as the NHL season is set to begin.

The Jets confirmed the deal will take effect in 2018-19 when the 21-year-old would have become a restricted free agent.

"This team, this organization, this city ... from Day 1, I was happy here," said Ehlers.

"It's amazing playing in front of all these fans. Winnipeg as a city is amazing, they love their hockey, so I could not see any reason to not want to stay here tong-term."

Ehlers, who was drafted ninth overall in 2014, appeared in all 82 games last season, amassing 25 goals and 39 assists for 64 points.

In two seasons with Winnipeg, Ehlers has totals of 40 goals and 62 assists in 154 games.

Ehlers is a key part of the Jets' young core with Calder Trophy runner-up Patrik Laine and Mark Scheifele.

"As Nik's linemate and good buddy, it's awesome to see a nice guy like that get rewarded," Laine said. ""Nik's going to be a leader for this team for many years."

"He can play both wings, he can play with different centres, he's made a huge jump from the end of last year," added Jets head coach Paul Maurice.

Winnipeg missed the playoffs last season after finishing fifth in the Central Division with 87 points.