Bogdanovic, 30, has averaged 14.1 points in 43 games this season. He has started only five games, but ranks fourth on the team in scoring, behind starting guards Trae Young and Dejounte Murray and small forward De'Andre Hunter.
ESPN first reported the extension, which was announced by the Hawks on Thursday night.
The new deal was finalized after Bogdanovic declined his $18 million player option for the 2023-24 season. The average annual value of the extension is $17 million.
"Bogi brings so many of the qualities we are looking for in a Hawks player," Hawks general manager Landry Fields said in a statement released by the team. "In addition to his elite shooting ability, he has the versatility to thrive as a starter or sixth man, and a competitiveness that is invaluable to our team and culture. We are excited that he will remain a key part of our team going forward."
Bogdanovic, a native of Serbia, missed the first 22 games this season after recovering from surgery on the patella tendon in his right knee. He has missed two other games related to management of the knee's recovery.
Bogdanovic is in his third season with the Hawks following three seasons with Sacramento. He has averaged 14.2 points per game in his career.
He set career highs with 16.4 points and 3.3 3-pointers per game with Atlanta in the 2020-21 season. He set another high by making 43.8% of his 3-pointers in the 2020-21 and has made 40.1% this season.
