Per club policy, terms of the deal were not disclosed.
In his first year with the Yotes, Pyatt appeared in 74 games while adding some scoring punch with 12 goals and 11 assists.
Pyatt also appeared in all seven Coyotes playoff games against Detroit last year, registering one goal and one assist.
The eighth overall pick in the 1999 draft, Pyatt has played for four teams in his career, having the most success with the Vancouver Canucks from 2006 to 2009.
In his three years with the Canucks, Pyatt scored 49 goals and added 44 helpers while playing in 224 games.
He signed as a free agent with the Yotes in September 2009 before helping them reach the playoffs last season.
Despite not scoring in the playoffs with Vancouver in 2009, credit must go to Pyatt for playing with a heavy heart since April of that year. Pyatt's fiancée, Carly Bragnalo, 27, was killed in a car crash in Jamaica on April 2nd. The two were to wed last summer.
All in all, this isn't a bad move for Phoenix. Pyatt, 28, is a solid player who provides some much needed offense for this team.
If he can regain the magic he had when he was with Vancouver, the Yotes could challenge San Jose for the Pacific Division.