The sides were scheduled to have an arbitration hearing Thursday. Brown filed for a one-year contract with a value of $4.8 million and the team filed for one year at $2.25 million, according to the Ottawa Sun's Bruce Garrioch. Brown made $2.1 million annually on his previous deal.
The 26-year-old enjoyed a career season in his first year with the Senators, amassing 16 goals and ranking second on the club with 43 points through 71 games.
He also logged a career-high 20:07 of average ice time per game last season and was a key player on Ottawa's penalty kill while also contributing on the power play.
The Senators acquired Brown from the Toronto Maple Leafs in July 2019.
Ottawa has $17.8 million in projected cap space with only one outstanding restricted free agent in forward Chris Tierney.