New Orleans is coming off a 33-49 campaign and finished outside the postseason for the third time in four seasons under Gentry. The 64-year-old has guided the Pelicans to a 145-183 record during his tenure.
"We couldn't be happier to extend our relationship with Alvin," said executive vice president of basketball operations David Griffin in a statement. "He is exactly the right coach at the right time for this franchise. As I have mentioned several times previously, the shared vision we have for the future of Pelicans basketball both on and off the floor will enable us to build a roster that fits both culturally and tactically."
Gentry was hired by New Orleans in 2015 after serving the previous two seasons as an associate head coach with the Los Angeles Clippers and Golden State Warriors, respectively.
The North Carolina native enjoyed his most success at the helm of the Phoenix Suns, leading the club to the Western Conference finals during the 2009-10 season.