Michaels, whose credits include "West Side Story" and stints with Madonna and Prince, has served as a guest judge and contributing choreographer on the Fox dance show since 2005.
But, what about Mary Murphy?
Fox announced that Murphy, the boisterous brunette judge known for her high-pitched screams, will not return as a resident judge on the seventh season of the hit dance competition.
Murphy, a professional ballroom dancer, will instead return only as a guest judge and choreographer.
Michaels will join alongside Oscar Producer Adam Shankman and co-creator Nigel Lythgoe on the judges' panel.
Shankman directed the film adaptation of "Hairspray" and has choreographed music videos for Whitney Houston, the B-52s, Barry White and Stevie Wonder.
"So You Think You Can Dance" will premiere on Fox on May 27.