Young's deal is for four years, with the fourth year being a player option, agent Mark Bartelstein confirmed. According to a source, the deal is worth $21.5 million.
Young took to Twitter to thank Lakers fans.
Thank you LakerNation for all your support, I'm very happy to say: I'm home! #SwaggyIsBack#GreatThingsToCome for the Lakers.
- Nick Young (@NickSwagyPYoung) July 11, 2014Young opted out of his contract with the Lakers in June. The 6-foot-6 guard is coming off a career year last season, when he averaged a team-high 17.9 points for a Lakers team that finished 27-55.
"I always wanted to be a Laker, and it will be a dream come true to still be here, but it's crazy," the seven-year veteran said in April. "You never know what happens. Last year they had a whole different team. It's obvious they're going to make some changes."
A Los Angeles native, Young played at USC. After opting out in June, a league source said Young wanted to be made "a priority" by the Lakers over the summer in order to stay.
Information from ESPNLosAngeles.com's Dave McMenamin contributed to this report.