The Hawks on Saturday matched the four-year, $32 million offer sheet the restricted free agent point guard signed with Milwaukee.
A move to Milwaukee would have allowed Teague to be reunited with former Hawks coach Larry Drew. Instead, he'll remain in Atlanta and run the offense for new coach Mike Budenholzer.
Teague, a four-year veteran and two-year starter, set career highs with averages of 14.6 points and 7.2 assists last season.
The Hawks lost Josh Smith, who signed with Detroit, but have re-signed guard/forward Kyle Korver and added free-agent forwards Paul Millsap and DeMarre Carroll.
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