The veteran guard agreed to a one-year, $21 million extension with the Hawks, per ESPN’s Shams Charania reported on Sunday.
The new deal also includes a trade kicker, per Charania.
McCollum, 34, landed in Atlanta mid-season from the Washington Wizards in the Trae Young deal.
The 13-year vet averaged 18.7 points, 3.3 rebounds and 3.9 assists through 76 games between the two teams. In 41 games (25 starts) with the Hawks, McCollum put up 18.7 points, 3.1 rebounds, 4.1 assists and one steal per game.
It marked the former 10th-overall pick’s 11th consecutive season making at least 150 three-pointers, doing so on a 37.5 per cent clip.
McCollum helped the upstart Hawks return to the NBA Playoffs after missing out in each of the previous two seasons, with Atlanta going 19-4 when McCollum was a starter during the regular season.
The Hawks were bounced in the first round by the eventual champion New York Knicks after six games. McCollum was second on the team in playoff scoring, averaging 19.2 points to go with three rebounds, two assists and one steal.
McCollum began his career with the Portland Trail Blazers, who drafted him in 2013, where he spent the first nine years of his career before being dealt to the New Orleans Pelicans. He’d spend four seasons in the Big Easy before joining the Wizards via trade for half a season.