Gordon had until June 29 to make a decision on his future and could have been an unrestricted free agent on July 1.
Gordon, 26, is scheduled to make $15.5 million for the final year of a four-year, $58.4 million contract he signed in 2012. The Phoenix Suns and Gordon had agreed on terms of a deal, but New Orleans matched the deal, keeping Gordon with the team.
Gordon played in 61 games this season for New Orleans, averaging a career-low 13.4 points a game. He missed 21 games after tearing the labrum in his left shoulder in February
His scoring average has gone down in each of past four seasons, despite shooting a career-high 45% from three-point range this season.
In seven NBA seasons, Gordon has career averages of 16.8 points, 3.4 assists and 2.6 rebounds.
- Scooby Axson