Schofield shared his decision on social media Tuesday, saying he is focused and hungry to once again chase championships with his teammates.
The forward tested his NBA draft status without hiring an agent, leaving him the option to return. He worked out last week for the Memphis Grizzlies but was considered a second-round prospect at best.
Schofield wrote that he learned through the draft evaluation process where he needs to improve his game.
The 6-foot-5, 238-pound Schofield averaged 13.9 points and 6.4 rebounds this past season while helping Tennessee go 26-9 and win a share of the Southeastern Conference regular-season title.