Bacot will return for his senior season in 2022-23.
The Tar Heels star will return to school after skipping the NBA draft.
Bacot has become one of the best big men in college basketball over the past three seasons. He set career highs in scoring average and rebound in 39 games.
He tied David Robinson's NCAA Division I men's record with 31 double-doubles in a season.
The Tar Heels' run to the national title game was fueled by Bacot's dominance in the paint. He was the first player to have six double-doubles in an NCAA tournament.
During the tournament, Bacot averaged more than 16 points per game, including more than 6 points on the offensive glass.
The Heels won 12 of their final 15 games to earn the 8 seed in the East Region. The Tar Heels have not won a national championship since they did it in 2016-17.
It was a great first season for head coach Hubert Davis, despite the fact that Kansas stopped North Carolina's run with a 72-69 win.
Getting Bacot back for one more year will help keep the Tar Heels in the championship conversation.