Terms of the deal have not yet been disclosed.
Next season will be Carter's 22nd in the league - an NBA record - and he'll become the first player to suit up in four different decades if he plays in a game in 2020, according to ESPN Stats & Info.
Carter said in April that he'd return for another season and was open to returning to the Hawks for a second campaign. The expectation is the 42-year-old will retire following the upcoming season, Wojnarowski adds.
The 10-time All-Star averaged 7.4 points on 41.9 percent shooting for Atlanta in 76 games last season. He passed Reggie Miller for 20th on the NBA's all-time scoring list in March.
Prior to his stop in Atlanta, Carter spent time with the Sacramento Kings, Memphis Grizzlies, Dallas Mavericks, Phoenix Suns, Orlando Magic, New Jersey Nets, and, most prominently, the Toronto Raptors.