Harris had a news conference on Monday to announce his decision and was joined by Wolverines coach John Beilein.
The guard from Detroit averaged a career-high 18.1 points per game last season and was a third team All-Big Ten player for a team that fell short of high expectations.
He was an All-Big Ten player as a sophomore when he led the Wolverines to their first NCAA tournament bid since 1998 and was second-team all-conference player as a freshman.
Harris ranks 10th in career scoring at Michigan, joining Jalen Rose and Mike McGee as the only players to score at least 1,600 points in three seasons.
Beilein will also be without departing senior DeShawn Sims next season.