Milan joined the Capitals towards the end of the last campaign, scoring four goals with eight assists in 13 games.
Capitals’ General Manager Scott Neil said: “Garrett has proven that he is very effective on our big ice.
“His speed allows him to make life difficult for opposition defences. He came to us with a good body of work last year.
“He’s dynamic, quick and his size makes him elusive. We think he’ll put up a lot of points next year.
“He wanted to return, he enjoyed playing for the club and he kept pushing for an opportunity to return. We want players who want to be here, and so we are pleased to have reached an agreement with him.”
Milan added: “There is unfinished business for me in Edinburgh and I know I can be even more productive on the big Murrayfield ice pad than last season.
“I told Scott that I want to help to help the club to make the play-offs. The club has recruited well.
“I know my place in the plan, and I’m looking forward to next season. Scott asked me to return to the club to make it successful.
“He and Michal (Dobron) are talking about what we can achieve in Edinburgh. We’re not talking about being a stepping stone any more, we’re here to grow a franchise.”
(Image permission: Ian Coyle)