The Mavericks have not disclosed terms, but the deal is believed to be for one year and slightly more than the $1.1 million veteran's minimum. .
ESPN.com's Marc Stein initially reported Tuesday that West would return to the Mavs.
The Mavs exhausted their salary-cap space with last week's signing of shooting guard O.J. Mayo and currently have 15 players under contract. West, celebrating his 29th birthday Thursday, is just one of seven players to return from last season's club that finished 36-30 and was swept out of the first round of the playoffs.
"We are thrilled that Delonte is returning to the Mavericks," president of basketball operations Donnie Nelson said. "Delonte is a great fit on our roster. We are excited that he will bring the same toughness and versatility on both ends of the court as he did last year."
West signed a one-year, veteran's minimum deal with Dallas last December but missed one-third of the season with a fractured right ring finger. He is one of eight guards on the roster and is expected to back up Mayo at shooting guard and newly acquired point guard Darren Collison.
West averaged 9.6 points, 3.2 assists and 2.3 rebounds in 44 games -- 33 starts -- last season.