"We have already begun preparations for the 2013 season and I look forward to getting Sean back in the building as soon as possible, as I know our fans do as well," he said.
The team finished 7-9 and out of the playoffs this season under interim coaches Joe Vitt and Aaron Kromer as Payton was exiled as a result of the Saints bounty scandal.
He had originally signed an extension last year, but that deal was nullified by the NFL due to unspecified language in the contract.
Payton has racked up a 62-34 record with four playoff appearances in six seasons guiding the club.
Notable deaths of 2014 [PHOTOS]