Young helped the Ducks to a 24-10 record this season, including a run into the third round of the NCAA tournament.
After spending two seasons at Houston, Young joined the Ducks this season and averaged 18.9 points per game, good for second best in the Pac-12.
Young had deliberated entering his name in the this spring's NBA draft, despite having a year of eligibility remaining, but took Twitter to confirm that he would be back.
"Great talk w/ the fam," Young tweeted Tuesday. "Decided the best thing for me is to get my Degree and play my last year as an Oregon Duck #1moreyear #Ducknation"
With Young's return the Ducks are set to return seven scholarship players, including fellow starter guard Damyean Dotson.
Young will be the conference's leading returning scorer.
He was also the Pac-12 free throw percentage leader, fifth in three-point percentage and eighth in steals.