Terms of the deal were not announced by the team Wednesday.
"Lauri is an excellent skater, a versatile forward and an important player on our team," said Coyotes GM Don Maloney. "We are happy to avoid arbitration and finalize a contract."
The six-foot-one, 200-pound Korpikoski led the Coyotes with two short-handed goals last season and was tied for second on the team with 19 goals.
Korpikoski collected a career-high three assists in a win against Calgary on Nov. 12, 2010.
He was fifth on the team in scoring and recorded a career-high five-game point streak going 2-5-7 from Jan. 10 to Jan. 17, 2011.