"George is a consummate pro and an important part of our team," Bucks general manager Jon Horst said. "His veteran leadership and steady guard play were instrumental to our success last season, both during the regular season and the playoffs. We are thrilled to have him back with the Bucks."
The 33-year-old Hill, who was acquired from Cleveland as part of a three-team trade last December, averaged 6.8 points, 2.6 rebounds and 2.1 assists over 47 games with the Bucks last season. He also played in all 15 of Milwaukee's playoff games, averaging 11.5 points on 53.4% shooting in just more than 26 minutes per game.
The Bucks finished 60-22 last season for the NBA's best record and their first 60-win season since 1980-81. The Bucks lost to Toronto in the Eastern Conference finals.
Hill has played 11 seasons in the NBA, including stints with the Spurs, Pacers, Jazz, Kings and the Cavaliers. He was the 26th overall pick by San Antonio in 2008.