Sources told ESPN's Jeff Passan that the deal is worth $4.5 million.
Schoop paid dividends for the Tigers after signing a one-year deal last offseason, providing solid defense up the middle in 2020 while hitting .278 with 23 RBIs and eight home runs, which ranked second on the team.
"I'm thankful for the opportunity to rejoin the Tigers for the 2021 season," Schoop said in a statement. "We have a really good group here -- we started to build something special last year and are going to take it to the next level in 2021."
In 2019, Schoop, 29, batted .256 with 23 homers, 59 RBIs and a .777 OPS in 121 games during his only season with the Minnesota Twins. It was his fourth consecutive season with more than 20 home runs.
His best season came with the Baltimore Orioles in 2017, when he was a first-time All-Star and hit .293 with 32 homers and 105 RBIs. He has a .259 career batting average with 141 homers and 415 RBIs.
"Jonathan made a tremendous impression on us last year, and we're looking forward to having him back with the ballclub for the 2021 season," Tigers general manager Al Avila said in a statement. "Not only were we impressed by the on-field results, but also his leadership and relentless desire to be in the lineup day-in and day-out. It's hard for a one-year free agent to have a real positive impact on a clubhouse's culture, but he certainly achieved that last season, and we're looking forward to that continuing."