The new deal is for three years, owner Tom Dundon said, according to The Athletic's Sara Civian.
"Don's leadership and experience are invaluable to our organization and I'm happy we were able to reach an extension," Dundon said. "Don and I have a great relationship and he is someone I trust. I'm excited to continue to build a championship team with Don."
Waddell joined the Hurricanes in 2014 and was named the team's general manager in 2018. Carolina snapped a 10-year playoff drought and advanced to the Eastern Conference Final in Waddell's first season as the GM. He was named one of the finalists for GM of the Year.
Drama intensified surrounding Waddell's place with the Hurricanes after he interviewed with the Minnesota Wild for their GM vacancy last week. He'd previously said in May that he'd be back with Carolina despite being without a contract.
Before his Hurricanes tenure, Waddell served as the general manager of the Atlanta Thrashers from 1998-2010 and as an assistant GM with the Detroit Red Wings during the 1997-98 season.