Babchuk had eight goals and 19 assists in 65 games for the Flames last season after coming to Calgary in a trade with the Carolina Hurricanes in November.
"Anton Babchuk is a sound positional player on the back line and perhaps one of our most adept defenseman at pinching down the wall to keep the play alive in the offensive zone," Flames General Manager Jay Feaster said in a statement.
"Anton makes a good first pass, his shot is a big weapon for us on the power play, and he contributes to our offense without sacrificing his defensive responsibilities."
Taken in the first round of the 2002 NHL Entry Draft by the Chicago Blackhawks, the blueliner has 34 goals and 62 assists in 250 career games with Chicago, Carolina and Calgary.
(Writing by Steve Keating in Toronto; Editing by Frank Pingue)