Report: Islanders & Kyle Palmieri Inching Closer To Contract Extension

Leading up to the 2025 NHL trade deadline, New York Islanders forward Kyle Palmieri created plenty of buzz in the rumor mill as a trade candidate. However, he was taken off the board when it was reported that the Islanders' preference was to sign him to a contract extension.

Now, with the deadline being one week ago, Palmieri remains without a contract extension. However, that is likely to change soon, as TSN's Pierre LeBrun reported that Palmieri and the Islanders are getting closer to finalizing an extension.

"Kyle Palmieri of the New York Islanders. Those contract talks started on deadline day and have continued, and I'm told they are pretty close to perhaps getting an extension done," LeBrun said. "However, when the Islanders announce it doesn't seem clear. I think they're getting close there."

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It is not too surprising to hear that the Islanders are closing in on an extension with Palmieri. The veteran forward has been a key part of their roster for multiple seasons, and that is continuing to be the case this season. In 64 games this season with the Islanders, he has 20 goals and 41 points.

Palmieri is currently in the final season of his four-year, $20 million contract. Given his importance to the Islanders' roster, it seems possible that he could receive a similar salary to his current $5 million AAV on his next contract. It will be interesting to see what happens on that front from here.