Terms of the deal were not disclosed.
Pekovic, 27, set career highs last season by averaging 16.3 points, 8.8 rebounds and 31.6 minutes per game over 62 games (all starts).
Pekovic has averaged 11.6 points and 6.2 rebounds in 23.6 minutes per game over his career. He was drafted No. 31 overall by the Timberwolves in 2008.
• The Milwaukee Bucks, who lost guards Monta Ellis and Brandon Jennings during the offseason, signed center Larry Sanders to a four-year, $44 million extension of his rookie deal, Yahoo! Sports reported.
Incentive bonuses could add as much as $US4 million to the deal.
The 6-foot-11 Sanders is best known for his defense, averaging 2.8 blocks per game. He also averaged 9.8 points and 9.5 rebounds.
• Miami Heat guard Dwyane Wade expects to be on the court this weekend for the first time since Game 7 of the NBA Finals.
He has been resting a bone bruise and has received shock treatments on both knees to help with tendinitis issues.
"I won't be ready for opening night when training camp starts," Wade said, according to ESPN's Heat Index. "But I'll be ready for opening night when opening night gets here."
