Rozier was the Hornets' leading scorer last season, averaging a career-best 20.4 points on 45% shooting from the field and 38.9% shooting from 3.
Rozier also averaged career bests with 4.2 assists and 1.3 steals while matching his career high with 4.4 rebounds per game.
Rozier and fellow veteran Gordon Hayward are part of the team's core, along with talented group that includes Rookie of the Year guard LaMelo Ball, Miles Bridges and P.J. Washington. The Hornets also added UConn's James Bouknight with the 11th pick in the NBA draft and guard-forward Kelly Oubre Jr. in free agency.
Rozier's extension comes on the heels of the Hornets' decision to trade former starting guard Devonte Graham to the New Orleans Pelicans for a protected 2022 first-round draft pick.
The Hornets also agreed to a multiyear extension with head coach James Borrego earlier this month. He guided them to a 33-39 record and a 10-seed in the Eastern Conference last season. Charlotte lost to the Indiana Pacers in the play-in game.
Charlotte had been as high as a 4-seed in the Eastern Conference before key players Ball, Hayward and Bridges were lost to injuries for extended periods of time.
Rozier's extension was first reported by The Athletic.