The Mitchelton-Scott rider, twin brother of Vuelta champion Simon, finished a disappointing 29th overall last year after coming fourth and winning the white jersey for the best Under-25 rider in 2016.
"Obviously 2016 was a highlight for me personally, riding almost two weeks in the white jersey and eventually finishing fourth on general classification was an amazing experience and confirmed to myself that I can ride at the highest level for three weeks," the 26-year-old said in a team statement on Tuesday.
A top climber with limited ability in time-trials, Yates will be hoping to make the most of a Tour route that only features a team time-trial and a 27km individual solo effort against the clock.
"Even though last year didn’t go as we had planned, we are heading back this year with ambitions of Adam challenging for a spot on the podium come July,” said his sports director, Matt White.
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“Adam will have a great team supporting him and I really believe he is going to show what he is capable of. He is one of the best climbers in the world and helping him to put it all together for three weeks on the biggest stage is an exciting challenge."
The Tour starts on July 7 in Brussels.
(Reporting by Julien Pretot; Editing by Ed Osmond)
