The Oilers confirmed Wednesday morning that Larsson had agreed to a contract with Seattle.
The Kraken had an exclusive window to negotiate with pending free agents. If they reached a deal with a player during that window, he automatically became Seattle’s pick in the expansion draft.
Each team can lose only one player to the Kraken in the draft.
Larrson, 28, had played 329 games for the Oilers over five seasons. He was acquired from New Jersey in a trade for Taylor Hall in June of 2016.
Larsson was drafted by the Devils fourth overall in 2011. He was at the end of of his six-year contract with had an average annual value of $4.17 million.
Larsson’s new deal with the Kraken is reportedly worth $16 million over four years.
The Kraken will officially announce all their expansion draft picks Wednesday night.