McGee had been a free agent in each of the last four years, but he will seek some security this time around.
The 32-year-old was a reliable starter for the Lakers in 2019-20, although there were fewer minutes available this season after the team added Anthony Davis and Dwight Howard in the offseason.
He finished the season averaging 6.6 points, 5.7 rebounds and 1.4 blocks in only 16.6 minutes per game.
This comes after a highly efficient 2018-19 campaign with the Lakers where he averaged 12.0 points, 7.5 rebounds and 2.0 blocks in 22.3 minutes per game. He ranked second on the team with 5.9 win shares, trailing only LeBron James, per Basketball Reference.
McGee has seen his production fluctuate throughout his career, but he's showed he can be a valuable contributor for elite teams. The center won two NBA titles with the Golden State Warriors, appearing in 142 regular-season games over two seasons while bringing some much-needed size off the bench.
The veteran has played an even larger role with Los Angeles, excelling with his rebounding and rim protection for a team that eventually took home this year's NBA title. His playing time disappeared at times during the playoffs, but he was useful in matchups against the Portland Trail Blazers and Denver Nuggets.
Keeping McGee in the rotation will give Los Angeles some stability heading into next season, which is especially useful with Howard and others hitting free agency.