Kelly signed a two-year, $1.65 million contract with the Avalanche on Monday, per Elliotte Friedman of Sportsnet.
Kelly had eight goals, 18 points, 30 PIM, 171 hits and 67 blocked shots in 80 contests with Ottawa last season. He became an unrestricted free agent after the Senators declined to present him with a qualifying offer. Kelly is likely to be a mainstay on the Avalanche's fourth line for the duration of his new contract.