Bynum's agent Mark Bartelstein said Bynum and the Pistons have agreed to a three-year deal worth $10.5 million.
Bynum averaged 10 points and 4.5 assists per game last season for Detroit, his second with the Pistons after a two-year stint with Euroleague power Maccabi Tel Aviv.
Late in the 2008-09 season, Bynum set a Pistons record with a 26-point fourth quarter in a win over Charlotte.
Last season in a March victory over Washington, Bynum became the first Piston in 25 years to record a 20-assist game. The last Piston to accomplishing that feat was Bynum's childhood idol, Isiah Thomas, in 1985.
Marc Stein is a senior NBA writer for ESPN.com.