The Norfolk, Va. native has spent the last week considering entering the NBA Draft, where he is projected as high as a Top 10 selection by some publications.
"I've had several discussions about my future plans with my family and Coach Williams and have decided to return to UNC to continue playing for the Tar Heels and continue my education," McAdoo said in a statement released by the school. "I love being at Carolina and really enjoy competing with and being around my teammates and am excited about what we can do together next season.
"Every young basketball player wants to have as much information about his future and understand what others in the game think about him. It's been interesting to learn the information that Coach Williams has gathered, but I am ready to continue as a Tar Heel. I'm enjoying my time in Chapel Hill and am excited about the future for my team and me."
McAdoo averaged 6.1 points and 3.9 rebounds in 15.6 minutes per game, but emerged late in the season. He started three games after John Henson suffered a left wrist injury in the ACC Tournament quarterfinals against Maryland.
He averaged 10.6 points per game in the postseason, including a season-high 17 points against Vermont and a team-high 15 points against Kansas.