Washington Capitals defenseman Jeff Schultz signed a four-year, $11 million extension on Wednesday, avoiding salary arbitration.

Schultz, 24, enjoyed a breakout 2009-10 season, amassing three goals, 20 assists and an NHL-leading plus-minus rating of plus-50, which also was a franchise record. The 27th overall pick in the 2004 draft will earn $2.5 million in the first two years and $3 million in the final two for a $2.75million charge against the salary cap.

"I kind of saw salary [filing for] arbitration as a precautionary measure in case something didn't get done, so we weren't kind of left with nothing." Schultz said. "It does take away one year of [unrestricted free agency], but I'm happy with where the numbers were and was willing to give up that one year."

With Schultz back in the fold, the Capitals have 19 players under contract for next season (including rookie Marcus Johansson). Assuming that restricted free agents Tomas Fleischmann and Eric Fehr are re-signed for a combined total of approximately $5 million, that would leave the Capitals about $4 million under the salary cap of $59.4 million, and two roster spots short of the maximum 23.

Fleischmann and Fehr have applied for arbitration and will have their salaries determined by an independent third party if they do not strike a deal with the Capitals in the coming weeks.

Notes: Washington placed center Michael Nylander on waivers in the hopes that another team is interested in taking him off the Capitals' payroll. It could be a viable option for a financially strapped franchise that needs to reach the salary cap floor — a team such as the New York Islanders — because Nylander's cap hit next season ($4.875 million) is more than his salary ($3 million). … Trade-deadline addition Joe Corvo signed a two-year, $4.5million contract to return to the Carolina Hurricanes.