from the New York Daily News,

...an announcement could come as early as this morning that Lundqvist has agreed to a one-year contract worth approximately $2.5 million. The deal is essentially a bridge to next season and beyond that will enable Lundqvist and the club to avoid their scheduled July 24 salary arbitration case while keeping the Rangers from having to unload players to get under this season’s $50.3 million salary cap.
The 25-year-old goaltender will get his big-money, long-term deal soon enough. After Jan. 1, 2008, the Rangers can sign Lundqvist to a lucrative and lengthy extension for 2008-09 and beyond without affecting their ‘07-08 salary-cap situation. And they almost certainly will do so.

more on Lundqvist & Shanahan…

update 11:00am, from the New York Rangers,

New York Rangers President and General Manager Glen Sather announced today that the club has agreed to terms with restricted free agent goaltender Henrik Lundqvist.

added 12:03pm, $4.25M for 1yr per TSN...