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.
The Lakers also have re-signed forward Jordan Hill to a two-year deal worth $18 million, a league source confirmed to ESPNLosAngeles.com. The Lakers hold a team option for the second year, the source said.
Young took to Twitter to thank Lakers fans.
- Nick Young (@NickSwagyPYoung) July 11, 2014
Young 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.
Hill, meanwhile, averaged 9.7 points and 7.4 rebounds this past season, his third with the Lakers.
Information from ESPNLosAngeles.com's Dave McMenamin contributed to this report.