Schaub has spent the last three seasons with the Falcons as the backup to starting quarterback Matt Ryan. He has played in seven games and completed six passes during that span.
"Matt has a great understanding of our scheme and brings valuable experience to the position," Falcons head coach Dan Quinn said.
The Falcons originally drafted Schaub in the third round of the 2004 NFL Draft out of Virginia. After three seasons backing up former starter Michael Vick, Atlanta traded Schaub to the Houston Texans in exchange for second-round draft picks in 2007 and 2008.
In his 15-year NFL career, Schaub has thrown for 24,887 yards and 133 touchdowns in 148 regular-season games. He has a 63.9 career completion percentage with a passer rating of 89.1.