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Duncan, a 15-time All-Star and five-time champion, accepted a paycut of almost $5 million a year to facilitate the signings of LaMarcus Aldridge and Danny Green.
Duncan will be returning for his 20th season with the Spurs, where he is still one of the NBA's elite power forwards at 39 years old. He averaged 13.9 points and 9.1 rebounds in 77 games last season.
Duncan was the No. 1 overall selection by the Spurs in the 1997 NBA draft. He earned league MVP honors in 2002 and 2003, and was the NBA Finals MVP in 1999, 2003 and 2005.
For his career, the 6-11 frontcourt star has averaged 19.5 points on 50.6 percent shooting, 11 rebounds, 3.1 assists and 2.2 blocks.