Citing team policies, the Hornets did not release the terms of the new contract.
Two people familiar with the contract confirmed the length of the deal on condition of anonymity and also told the Associated Press that it pays Scott a base of a little more than $5 million per year with incentives that could push it higher than $6 million per year.
"He thinks this team is going to be the best team in the Western Conference next year. . . . San Antonio's getting older," said his agent, Brian McInerney. "The Hornets can only get older in a good way."
After this season ended, Scott, 47, had the option of either staying with the Hornets at his old $3.5 million salary or buying out of his contract for a little more than $2 million.
Scott, who joined the Hornets in 2004-05 with an 18-64 season after coaching in New Jersey, is 151-177 in New Orleans, including a franchise-record 56 victories this season.
The Atlanta Hawks, looking for new experienced front-office leadership after ending their playoff drought this season, hired Rick Sund as general manager.
Sund has worked in NBA front offices for more than 30 years, including stints with Milwaukee, Dallas, Detroit and most recently the Seattle SuperSonics.
Sund, 56, will replace Billy Knight, who is resigning.
Sund inherits a team that ended the NBA's longest playoff drought this year by making its first appearance since 1999. The Hawks lost to Boston in seven games in the first round.
A priority for Sund is the status of Coach Mike Woodson, whose contract expires on June 30.
Chicago Bulls forward Joakim Noah accepted a deferred prosecution agreement in his marijuana possession case in Gainesville, Fla., resulting in six months' probation and a $200 fine.
The former Florida standout was charged with possession of less than 20 grams of marijuana and for having an open container of alcohol early Sunday in downtown Gainesville. As a first-time offender, he was eligible for the deferred prosecution agreement, the State Attorney's Office said.
The charges will be dropped in six months if Noah, 23, meets the terms of his probation.
Noah also must pay $206 in traffic fines for two citations he received Sunday on the Florida campus. Noah was ticketed for driving with a suspended license without knowledge and not wearing a seat belt.