Terms of the contract were not disclosed.
Carter split last season between Denver and New York, averaging 3.3 points with 2.1 assists in a combined 33 games. He has averaged 4.9 points and 3.9 assists in 599 career NBA games, 181 of which have been starts.
The 36-year-old veteran has also played for Miami, San Antonio and Minnesota in addition to his stops in Denver and New York. His best season came with the Nuggets in 2007-08 when he started 67 games and averaged 7.8 points with 5.5 assists.