Team president Ernie Grunfeld announced the signing Friday. Terms of the deal were not disclosed.
The 6-foot-10 Gooden appeared in 22 regular season games for Washington last season, averaging 8.3 points and 5.2 rebounds per contest.
Over 10 playoff games, Gooden averaged 3.4 points and 4.2 rebounds. In Game 1 of the Eastern Conference Semifinals, he had 12 points and 13 rebounds in the Wizards's win at Indiana
The 12-year NBA veteran originally signed a 10-day contract with Washington on Feb. 26, and eventually signed for the remainder of the season on March 18.
For his career, Gooden is averaging 11.7 points and 7.5 rebounds per game.