Per Yahoo Sports' Shams Charania, Teodosic exercised his $6.3 million option for the 2018-19 season.
The 31-year-old told Broderick Turner of the Los Angeles Times in March he was enjoying his first NBA season:
"So far, I really enjoy. I'm happy to be here and I really enjoy playing with the best players in the world and against the best players in the world. I'm happy that I'm here. ... I was expecting much faster and much physical game here. So it's not nothing that I didn't expect. I expected this from the best players in the world."
After suffering a plantar fascia injury to his left foot in the second game of the season, Teodosic sat out 22 games to recover. He developed into a solid role player for head coach Doc Rivers, contributing 9.5 points and 4.6 assists per game.
Despite losing Chris Paul and Blake Griffin in separate trades last season, the Clippers still finished a respectable 42-40 in the Western Conference. It's a testament to Rivers' coaching and the overall depth of the roster with players such as DeAndre Jordan, Lou Williams, Austin Rivers and Montrezl Harrell.
Teodosic will be able to run the backcourt with Austin Rivers and Patrick Beverley, who was limited to 11 games last season after having microfracture surgery on his right knee in November.
The Clippers are still on the fringes of playoff contention in the still-early stages of the offseason, but Teodosic's return gives them more depth in the backcourt heading into the 2018-19 season.