The six-foot ten (2.08m), 230-pound (104kg) free agent had mulled over an offer to return to the Miami Heat but Los Angeles was always the place where he wanted to be.
"I just want to thank everybody for supporting me," Odom, 29, told a news conference at the Lakers training facility in El Segundo. "It was a tedious time but...I'm back where I want to be and where I want to end my career.
"I want to thank the people of LA for their help. The fans are incredible. It's just something that I couldn't pass up.
"And I did it for this, to get back to that level," he added, pointing to his NBA Championship ring.
"And I'm proud to be a Laker."
Odom, who joined Los Angeles in July 2004 from Miami in a multiple trade for Shaquille O'Neal, said the contract he had been offered to return to the Heat had been attractive.
GRACIOUS OFFER
"I thought about it because that's part of the business, one of the ways where I can protect myself," he said. "Miami, they were aggressive and their offer was gracious but this is where I want to play basketball."
Although financial details were not disclosed by Los Angeles, Odom's contract is estimated by local media to be worth $33 million over four years.
His retention will bolster a powerful Lakers starting line-up comprising NBA Finals MVP Kobe Bryant, Spanish forward Pau Gasol and veteran guard Derek Fisher, plus forward Ron Artest who joined the franchise earlier this month.
Odom, a 10-year NBA veteran, was a significant factor in helping the Lakers clinch the 2008-09 title, averaging 12.3 points, 9.1 rebounds and 1.35 blocks in the postseason.
The versatile forward started 32 regular season games for the Lakers when center Andrew Bynum was sidelined with injury before fully embracing his bench role in the playoffs.
"I expect us to be better with everyone back besides Trevor (Ariza)," Odom said.
"In his place, Ron-Ron (Artest) is a step-in
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