LeVert averaged 14.9 points, 4.9 rebounds and 3.7 assists as a junior for the Wolverines in 2014-15 before injuring his foot against Northwestern in January and missing the rest of the season.
"His injury last season was unfortunate, but he never wavered in his commitment as a leader, a student or with his rehabilitation," head coach John Beilein said in a statement.
After earning limited playing time during his freshman season, LeVert emerged as a sophomore, improving from 2.3 points per game to 12.9.
LeVert's return means Michigan will its top six scorers from a team that finished 16-16 overall and 8-10 in Big Ten play in 2014-15.
"Coming back allows me to keep working towards my Michigan degree and take the next steps in my development as a player, teammate and a leader of our program," LaVert said in a statement. "Michigan is a very special place and the college experience only comes once. The future is bright and I am blessed to be part of it."
- Alex Putterman