McGrady, 33, spent this season playing for Qingdao of the Chinese Basketball League. He was averaging 25 points, 7.2 rebounds and 5.1 assists per game.
McGrady won’t play in the Spurs regular season finale Wednesday, but he’ll be ready for the start of the playoffs.
McGrady, a two-time NBA scoring champ, last played in the NBA during the 2011-12 season for the Atlanta Hawks, during which he averaged 16.1 minutes, 5.3 points, 3.0 rebounds and 2.1 assist per game.
For his career, McGrady’s averaged 19.6 points, 5.6 rebounds and 4.4 assists a game.
McGrady takes the place of Stephen Jackson, whom the Spurs released last week.
Copyright 2013 ABC News Radio
Jill Martin, CNN
Eliott C. McLaughlin, CNN Newswire