Bernier will compete for starts with Jimmy Howard.
"There's a lot of history in this organization and in this town and I'm excited to be a part of it," Bernier said in a statement.
Bernier served as the Avalanche's primary goaltender after Semyon Varlamov was sidelined by a knee injury in late March. He helped the Avalanche reach the playoffs for the first time in four seasons by posting a 19-13-3 record with a 2.85 goals-against average and .913 save percentage.
He missed the final two games of Colorado's first-round series loss to the Predators after suffering a lower-body injury in Game 4.
Bernier was the odd man out, however, after the Avalanche acquired Philipp Grubauer from the Capitals.
Bernier, a 2006 first-round pick by the Los Angeles Kings, has also played for the Maple Leafs and Ducks in a 10-year career.
The Associated Press contributed to this report.