News of Oubre's agreement was first reported by Yahoo Sports.
Oubre, 25, was one of the most intriguing free agents on the board given his combination of talent, physical skills and age.
After struggling to find any kind of rhythm during the early part of last season playing alongside new teammates Stephen Curry and Draymond Green on the Warriors, Oubre started to see more results in February while shooting 43% from beyond the arc and drawing praise from teammates and coaches for his defensive presence.
Oubre rebounded nicely from his slow start to close the year averaging 15.4 points and 6 rebounds per game. He dealt with a wrist injury throughout the last month of the season that kept him out of the Warriors' biggest games down the stretch.
Oubre made waves just after the trade deadline when he expressed that he was not looking to come off the bench when asked about his situation moving forward within the organization.
With Klay Thompson expected to return at some point early next season from an ACL injury, the Warriors made it clear they wanted Oubre to return, but only if he was comfortable playing off the bench, as he did at the end of the season before his wrist injury.
"I can't speak for the future, brother," Oubre said just after the deadline. "You keep asking me questions like I'm a psychic. But at the end of the day, I'm growing, I'm honing in on my skills in this league and I can offer a lot more than coming off the bench, so at the end of the day, this is my life. I can't tell the future. Only God can."
ESPN's Nick Friedell contributed to this report.