Financial terms of the deal were not released.
"We are very pleased to sign Lauri to a two-year contract," said Coyotes general manager Don Maloney. "Lauri is an excellent skater, a versatile forward and an important player on our team. We are happy to avoid arbitration and finalize a contract."
Korpikoski set career highs in games (79), goals (19), assists (21), points (40) and game-winning goals (4) with Phoenix last season. He also led the team with two short-handed goals.
In 218 games over three seasons with the Coyotes and Rangers, the 24-year-old has totaled 30 goals and 35 assists. Korpikoski was picked by the Rangers in the first round of the 2004 draft, but was traded to Phoenix in July 2009 in exchange for Enver Lisin.