Dwyane Wade is back with the only NBA team he's ever known.
Wade will hold a player option for the second year of the deal, which was originally reported to be worth $34 million.
Wade joins fellow "Big Three" star Chris Bosh in coming back to the team that just lost to the San Antonio Spurs in the NBA Finals. LeBron James has already left to re-join the Cleveland Cavaliers, while sharpshooter Ray Allen is reportedly considering retirement.
Wade saw his playing time diminish in the past season as the Heat kept him on the bench for long stretches to allow knee injuries to heal. Wade was still able to average 19.1 points, 4.5 rebounds, and 4.7 assists per game, and hit a career high with 55 percent shooting.
Wade has led the Heat to NBA titles in 2006, 2011, and 2012.
The team's outlook is uncertain, however, after the departure of LeBron James. After James announced that he will be returning to the Cabs, Wade took the high road.
"As a friend and a teammate, I am sad to see my brother LeBron leave to begin a new journey," Wade said in a statement. "We shared something unique and he will always be part of my family. LeBron made the right decision for himself and his family because home is where your heart is."
Wade also said the he and James accomplished their goal of bringing multiple titles to the Heat.
"As an organization, a community, and as individuals, we achieved the goals we set when we first signed on together. We are champions," Wade said.
The new contract means Wade takes a roughly $5 million pay cut, which will allow the Heat to go after other free agents to bolster the roster. The lesser contract has already allowed the Heat to sign Chris Bosh to a five-year, $118 million max contract, and to get Luol Deng for a two-year, $20 million deal.