Josh Smith will remain with the Hawks after Atlanta quickly matched an offer sheet from the Memphis Grizzlies on Friday.
"Tonight, the Hawks organization received an offer sheet from the Memphis Grizzlies for Josh Smith," Atlanta general manager Rick Sund said in a statement. "We are happy to announce that we will match their offer sheet.
"Ownership, management and the team are happy to have Josh return as a member of the Hawks."
Terms were not immediately disclosed.
The Grizzlies announced earlier in the day that Smith, a restricted free agent, had signed the offer sheet. The Hawks had seven days to match the offer.
The Hawks drafted the 6-foot-9, 235-pound Smith out of high school in the first round in 2004.
Smith averaged 17.2 points, 8.2 rebounds and 2.8 blocks in helping the Hawks make the playoffs last season.