“Paul has been a cornerstone of our franchise for the last decade and we could not be more pleased that he is returning to the team,” Celtics president of basketball operations Danny Ainge said in a statement.
Pierce is the third-leading scorer in franchise history with 19,899 points, trailing only Larry Bird  and John Havlicek. He averaged 18.3 points, 4.4 rebounds and 3.1 assists per game last season and made his eighth All-Star team.
“I am very excited to be back in Boston,” Pierce said in the team’s statement. “I have always said that I would love to retire as a Celtic, and re-signing here will allow me to do that. I would like to thank Danny, Doc [Rivers], the ownership group and the rest of the organization. I’m thrilled that they kept the core intact and look forward to getting back on the parquet with my teammates so we can bring Banner 18 home to Boston.