Pargo, 34, joined the team mid-season in 2012-13. He played in 29 games for Charlotte last year, averaging 4.7 points and 1.8 assists per game.
The Hornets have made changes at several key positions offseason. They signed Lance Stephenson to a three-year, $27 million contract after the Utah Jazz matched their offer sheet to small forward Gordon Hayward.
Charlotte finished last season 43-39 before losing to the Heat in the first round of the playoffs in a four-game sweep.
- Paul Palladino