The Los Angeles Times reported Fisher, 35, has agreed to a three-year contract.
There had been reports during the past week that the Miami Heat had tried to lure Fisher to play with the newly signed LeBron James and Chris Bosh. Fisher, however, said in a statement released by the Lakers that he had been urged to stay in Los Angeles by superstar teammate Kobe Bryant.
"At the end of the day, there's one person I could not turn away from," Fisher said. "Kobe Bryant asked me to stay, but supported whatever decision I made. He and I have played together for 11 seasons, came into the league together as kids, and has been loyal to me even when others had doubts.
"I have decided to continue with Kobe, continue with our teammates and the fans of Los Angeles."