We propose a new regularization scheme to study the bound state of two-nucleon systems in Lattice Effective Field Theory. Inspired by continuum EFT calculation, we study an exponential regulator acting on the leading-order (LO) and next-to-leading order (NLO) interactions, consisting of local contact terms. By fitting the low-energy coefficients (LECs) to deuteron binding energy and the asymptotic normalization coefficient (ANC) on a lattice simulation, we extract the effective range expansion (ERE) parameters in the $^3S_1$ channel to order $p^2$. We explore the impact of different powers of the regulator on the extracted ERE parameters for the lattice spacing $a=1.97$ fm. Moreover, we investigate how the implementation of the regularization scheme improves the predicted ERE parameters on the lattice spacing in the range of $1.4 le a le 2.6$ fm. Our numerical analysis indicates that for lattice spacing greater than $2$ fm, the predicted observables are very close to the experimental data.
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