"Over the past few months, I have spent a lot of time thinking about my future," LeVert said in a statement. "My family and I, along with the coaching staff gathered as much information as possible. After considering my options, I am excited to announce I will return for my senior year. Coming back allows me to keep working towards my Michigan degree and take the next steps in my development as a player, teammate and a leader of our program. Michigan is a very special place and the college experience only comes once. The future is bright and I am blessed to be part of it."
The 6-foot-6 LeVert was averaging 14.9 points, 4.9 rebounds and 3.7 assists at the time of his injury.
Several NBA executives told ESPN that LeVert likely would have been selected somewhere in the latter portion of the first round.
Michigan could return everyone from its roster -- if senior big man Max Bielfeldt decides to come back. Bielfeldt could elect to transfer and play elsewhere for his final season.
The Wolverines finished 16-16 last season, but dealt with several injuries to LeVert, starting point guard Derrick Walton and also fellow guard Spike Albrecht.
"We love coaching Caris and are excited he has decided to come back for his final season," Michigan coach John Beilein said in a statement. "His injury last season was unfortunate, but he never wavered in his commitment as a leader, a student or with his rehabilitation. Caris is a special person both on and off the court and we are proud of what he has accomplished. The best is yet to come for a young man like Caris LeVert."