The Bobcats announced the move on Friday but did not release financial terms of the deal.
The 6-foot-1 Pargo joined the Bobcats last March, signing a pair of 10-day contracts before signing for the remainder of the season.
Pargo was productive off the bench in 18 games, averaging 8.4 points and 1.9 assists in 16.2 minutes per game. He also shot 38.2 percent from beyond the 3-point arc and 88.9 percent from the free throw line.
Pargo, 33, has played nine seasons in the NBA, participating in 461 games with the Lakers, Raptors, Bulls, Hornets, Hawks, Wizards and Bobcats. For his career, he's averaged 6.5 points and two assists per game.