ATLANTA -- Jeff Teague is still a member of the Atlanta Hawks.

The Hawks on Saturday matched the four-year, $32 million offer sheet the restricted free agent point guard signed with Milwaukee earlier this week.

A move to Milwaukee would have allowed Teague to be reunited with former Hawks coach Larry Drew, who helped recruit him to the Bucks, sources told ESPN.com.

Instead, Teague will remain in Atlanta and run the offense for new coach Mike Budenholzer.

Teague, a four-year veteran and two-year starter, set career highs with his averages of 14.6 points and 7.2 assists last season. He ranked 12th in the league in assists and is one of only 10 players to increase his scoring average each of the last three seasons.

"He has improved each year of his career and continues to get better," Hawks general manager Danny Ferry said. "At 25, he's already been a key contributor on a playoff team and we look forward to seeing him develop into even more of a leader on our team."

The Hawks lost Josh Smith, who signed with Detroit, but have re-signed guard-forward Kyle Korver and added free-agent forwards Paul Millsap and DeMarre Carroll.

Budenholzer said Teague "has a high level of talent."

"Keeping him with our group allows us to continue to build and improve going forward," he said.

Teague was the No. 19 overall pick out of Wake Forest in the 2009 draft.

Atlanta also signed point guard Dennis Schroder, a first-round draft pick from Germany, this week.

Milwaukee, meanwhile, signed free-agent guard O.J. Mayo on Saturday. And now, with Teague out of the picture, it could ramp up its efforts to bring back Brandon Jennings, a restricted free agent who's played all four of his NBA seasons with the Bucks.

Information from ESPN.com's Brian Windhorst and Marc Stein, ESPN The Magazine's Chris Broussard and The Associated Press was used in this report.