Brown, formerly of the Cleveland Cavaliers, played with New Orleans two seasons ago and was brought back to bolster the depth in the backcourt depth. Terms of the deal were not disclosed.
The move was made following the departure of backup guard Jannero Pargo, who joined a team in Russia.
"I'll be all over the place," Brown said. "I can play [both guard spots and both forward spots]. If I was a couple of inches taller I could probably play a little center."
"We like the depth that [Brown] provides in a number of areas," Hornets general manager Jeff Bower said. "He's a veteran that we have a lot of confidence in."
Brown averaged 7.5 points, 3.4 rebounds, and 2.2 assists in 78 games with Cleveland last season. In 2006-07 with the Hornets, the 29-year-old Brown averaged 11.6 points, 4.3 rebounds and 2.6 assists in 58 games.
When he was last with New Orleans, the injury-plagued team finished 39-43 and missed the playoffs. Last season the healthy Hornets won the Southwest Division with a franchise-record 56 victories.
"Last year they were able to keep everyone healthy and you saw what kind of product they put on the floor," Brown said. "I'm glad to be back."