Marshall has been a large part of the Pelicans' rotation in the past month. In the last 19 games, he has averaged 8.6 points, 5.5 rebounds and 3.4 assists in 25.8 minutes per game with four starts.
Sources told ESPN the deal is fully guaranteed for the rest of this season as well as next season.
New Orleans has valued Marshall's energy and defensive prowess this season. The 6-foot-7 Marshall has drawn tough assignments such as Brooklyn's Kyrie Irving and Golden State's Stephen Curry in recent games.
Thursday was the first day the Pelicans could convert Marshall's contract while still being able to stay under the luxury tax for this season.