Former first overall draft pick Ryan Nugent-Hopkins has inked a seven-year contract extension with the Edmonton Oilers, the NHL club announced on Thursday.

The 20-year-old Canadian, who is entering his third season with the Oilers, signed a deal reportedly worth $42 million.

The Vancouver native played in the Western Hockey League with the junior Red Deer Rebels before being chosen as the top pick by Edmonton in the 2011 entry draft.

He made $925,000 last season, scoring four goals and 20 assists in the lockout shortened 40-game season. He also underwent shoulder surgery in April.

Nugent-Hopkins had a strong rookie season with Edmonton (2011-12) posting 18 goals and 52 points in 62 games. In November 2011, he recorded five assists in a game against Chicago, becoming the first 18-year-old player in NHL history to achieve the feat.

He was named the top forward at last year's World Junior Ice Hockey Championships after scoring four goals and 15 points in just six games and had 106 points in 69 games in his final year of junior hockey with Red Deer.