Terms of the deal were not released.
"We're pleased that Jannero will be back with us again this season," Hornets general manager Rich Cho said. "He is a great veteran presence in our locker room who is always ready when called upon."
The 34-year-old averaged 4.7 points, 1.8 assists and 0.7 rebounds in 29 games with Charlotte last season.
With nine years under his belt in stints with the Lakers, Raptors, Bulls, Hornets, Hawks, Wizards and Bobcats, Pargo holds career averages of 6.4 points, 2.0 assists and 1.4 rebounds.
2014: The Year in Music [PHOTOS]