The Red Deer Rebels selected Dion in the third round of the 2000 WHL Bantam Draft.
One year later, he joined the Rebels for the 2001–02 season and recorded 17 points in 67 games.
Los Angeles acquired the veteran defenceman and forward Nate Thompson from the Ottawa Senators on Tuesday night for forwards Marian Gaborik and Nick Shore.
The Senators are retaining 25 per cent of Phaneuf's million salary-cap hit, so the Kings get a top-four defenceman for .25 million over the next three-plus years.
"Dion brings to our club a great deal of experience and leadership," Kings general manager Rob Blake said.
Dion established himself as the junior hockey team's top player following the draft, earning the Bill Hunter Memorial Trophy as the top defenceman in the WHL.The Kings visit the Penguins on Thursday, so he doesn't even have to leave Pittsburgh to meet up with his new team."I'm excited to be going to the Los Angeles Kings," Phaneuf said."Everybody knows that things are going to happen," Ottawa captain Erik Karlsson said. He should be an offensive upgrade on the power play, where Los Angeles is ranked 19th in the league."You just never know when it's going to happen or if it's going to happen. The always budget-conscious Senators save money even as they take on the 35-year-old Gaborik's contract, which has about million left on it over the next three years.