Salo, who has been plagued by injuries over the last two seasons, scored four goals and added 14 assists in 66 games last year. He is currently recovering from offseason shoulder surgery.
In four NHL seasons, all with the Senators, Salo has played in 195 games and tallied 19 goals and 50 assists with a plus-36 rating.
Ottawa also added Anders Hedberg to the front office as the team's director of player personnel. The 51-year-old inked a three-year contract.
The Senators also re-signed minor league forwards Josh Langfeld and Jeff Ulmer to one-year contracts.