Kahkonen, 25, acquired last season from the Minnesota Wild, is one of three veteran goaltenders on the Sharks' roster -- including James Reimer and Adin Hill -- and this contract could be a sign one of those netminders is on the move.
"Kaapo has shown potential to be a number one goaltender in the NHL, and impressed us when he joined our team in the last part of the season," Sharks general manager Mike Grier said in a statement. "We are excited to have him with us."
Kahkonen, 25, appeared in 36 games last season for the Wild and Sharks, finishing with a 14-14-4 mark and a 2.87 goals-against average. Acquired by San Jose on March 21, he is 33-23-5 for his career.
The Sharks, who struggled most of last season, resulting in changes both in the front office and behind the bench, used five goaltenders. Reimer led the team with 19 wins, followed by Hill (10) and Kahkonen (2). Combined, San Jose's goaltenders finished with a 3.18 GAA.
The 6-foot-2 Kahkonen is a native of Helsinki, Finland, who was chosen by Minnesota in the fourth round of the 2014 NHL draft.