Silas took over the team Dec. 22 when Larry Brown was removed as coach. Since then the Bobcats are 15-13 and pulled within 1 1/2 games of Indiana for eighth place -- and the final playoff slot -- in the Eastern Conference.
"This team has made great strides in the eight weeks since Paul has taken over," said Bobcats General Manager Rod Higgins in a statement. "Under his leadership we have seen our team play with confidence, enthusiasm and pride. … Just as we were confident eight weeks ago that he was the right choice to lead this team for the remainder of this season, we are confident that he is the right choice to lead this club into the future."
Silas was given a contract through the end of the 2011-12 season. Financial terms of the deal weren't released.
Silas previously coached the Los Angeles Clippers, the Charlotte Hornets prior to the team moving to New Orleans and Cleveland. He has a record of 370-413 over 11 seasons.