Islanders Take Forward Off Trade Block, Working on Extension

The New York Islanders are going in a different direction when it comes to a key veteran on trade deadline day.

Jan 30, 2025; Philadelphia, Pennsylvania, USA; New York Islanders center Kyle Palmieri (21) against the Philadelphia Flyers at Wells Fargo Center. Mandatory Credit: Eric Hartline-Imagn Images / Eric Hartline-Imagn Images

The New York Islanders made a big trade when they sent veteran forward Brock Nelson to the Colorado Avalanche. More forwards were expected to be on the Islanders’ trade block, but one other key veteran is being taken in a different direction.

According to TSN’s Pierre LeBrun, the Islanders have seen progress in contract extension talks with 34-year-old Kyle Palmieri. Pen isn’t likely to be put to paper on trade deadline day, but the Islanders have made it known they intend to keep Palmieri around with a new deal.

Hearing that the Islanders have told pending UFA Kyle Palmieri they're not trading him today and focused on working on a contract extension with him over the coming days.

— Pierre LeBrun (@PierreVLeBrun) March 7, 2025

Palmieri arrived on Long Island during the 2020-21 season in a trade from the New Jersey Devils and signed a new contract with the Islanders that offseason. In the final year of that deal Palmieri currently makes $5 million against the salary cap.

In 284 games in parts of five seasons with the Devils, Palmieri has scored 83 goals and 82 assists for 165 total points. With 15 years of NHL experience, Palmieri has played with the Islanders, Devils, and Anaheim Ducks.

Palmieri was originally a first-round pick (26th overall) of the Ducks in 2009 and he’s gone on to play 879 games in the NHL. In that time, he has posted 266 goals and 254 assists for 520 total points.

It’s not clear what kind of deal Palmieri is looking for, but a safe assumption would be a pay cut from his current. $5 million salary, even if the cap is expected to take a big jump.

Palmieri isn’t getting any younger and the Islanders could use the cap space to make some new additions as they look to return to find their way back as Stanley Cup contenders.

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