As NHL free agency approaches, the Colorado Avalanche continue to extend offers to their restricted free agents. The latest beneficiary of a new deal is forward Steve Downie, according to Bob McKenzie of TSN.

COL agrees to terms with Steve Downie on 2 year deal, $2.55M in first year and $2.75M in second. $2.65M AAV.

— Bob McKenzie (@TSNBobMcKenzie) June 29, 2012

Downie, 25, was acquired at the trade deadline from the Tampa Bay Lightning in exchange for defenseman Kyle Quincey. The hard hitting forward had a spectacular first two weeks with Colorado before a shoulder injury limited his effectiveness for the remainder of the season. He underwent offseason surgery and is expected to be fully healthy by the start of camp.

For updates on the Avs offseason, stay tuned to SB Nation Denver. For more coverage,visit our Avalanche blog Mile High Hockey. For more news and notes from around the league, head over to SB Nation NHL.