The Mavericks announced the signing in a statement issued Monday. Team officials released no terms of the deal. However, a person familiar with the negotiations had told The Associated Press when the agreement was reached earlier this month that the deal is for more than $80 million over four years, with a no-trade clause.
At 32, Nowitzki had opted out of the final year of his contract to become an unrestricted free agent for the first time, but he didn't talk seriously with any other teams.
The 12-year NBA veteran has averaged 22.9 points, 8.5 rebounds, 2.7 assists, one block and 36.7 minutes in 920 career games. In 97 playoff games, Nowitzki averages 25.5 points, 11 rebounds, 2.3 assists, 1.2 steals and 1 block per game.
The Wurzburg, Germany, native is the Mavericks' career scoring leader with 21,111 points and tops the Mavs in career rebounding with 7,802. The 2007 NBA MVP became the 34th player in league history to reach 20,000 career points on Jan. 13 and ranks 27th among all-time scorers.