The Hawks on Saturday matched the four-year, $32 million offer sheet the restricted free agent point guard signed with Milwaukee.
A move to Milwaukee would have allowed Teague to be reunited with former Hawks coach Larry Drew. Instead, he’ll remain in Atlanta and run the offense for new coach Mike Budenholzer.
Teague, a four-year veteran and two-year starter, set career highs with his averages of 14.6 points and 7.2 assists last season. He ranked 12th in the league in assists and is one of only 10 players to increase his scoring average each of the last three seasons.
“He has improved each year of his career and continues to get better,” said Hawks general manager Danny Ferry. “At 25, he’s already been a key contributor on a playoff team and we look forward to seeing him develop into even more of a leader on our team.”
The Hawks lost Josh Smith, who signed with Detroit, but have re-signed guard-forward Kyle Korver and added free-agent forwards Paul Millsap and DeMarre Carroll.
Budenholzer said Teague “has a high level of talent.”
“Keeping him with our group allows us to continue to build and improve going forward,” he said.
Teague will be part of a backcourt that includes German guard Dennis Schröder, the team’s first-round pick, who it signed to a contract Thursday.
Teague was the No. 19 overall pick out of Wake Forest in the 2009 draft.