The deal, completed on Tuesday, gives the Islanders exclusive negotiating rights with Ehrhoff, who could become an unrestricted free agent on Friday. New York traded a fourth-round pick in next year's draft to Vancouver.
Ehrhoff had 14 goals, 36 assists and a plus-19 rating in 79 games with Vancouver. He added two goals and 10 assists during the Canucks' run to the Stanley Cup finals, but was a minus-13 in the postseason.
The Canucks made the move shortly after announcing a new deal to keep defenseman Kevin Bieska, agreeing to terms on a five-year contract worth $23 million.