The Predators acquired Gill from the Montreal Canadiens at last year's trade deadline in exchange for Blake Geoffrion, Robert Slaney and a second-round draft pick as part of general manager David Poile's in-season shopping spree.
In 76 games between the two teams Gill scored one goal to go with 12 assists.
Gill, 37, was scheduled to be an unrestricted free agent this summer. He doesn't have great speed and won't provide much offense, but he will give the Predators some great size, physicality, and a veteran presence on their blue line as well as their penalty kill.
Now that Gill is signed the Predators can focus their attention on their remaining free agents, including center Paul Gaustad (who they gave up a first-round pick for at the trade deadline) and, of course, defenseman Ryan Suter.