Walman was asking for a one-year contract worth $1.7 million.
But the arbitrator just decided otherwise. He will earn $750,000 for a two-year deal. His salary will be $225,000 if he plays in the American League.
Drafted in the third round in 2014 by the St. Louis Blues, Walman played 51 games last season with the Blues and Red Wings. He recorded 10 total points.