The 41-year-old right-hander, who will be entering his 21st major league season, was 4-3 with a 3.31 ERA and 23 saves in 26 chances for the Rockies this season. His saves total was his highest since 2004 with the Chicago Cubs.
Colorado had until Friday to make a decision on the option, which carried a $250,000 buyout. Hawkins also made $2.25 million this year.
The Rockies also said infielder-outfielder Matt McBride had been sent outright off the 40-man roster to the minors.