The New Orleans Pelicans have signed head coach Alvin Gentry to a two-year extension, the team announced on Thursday.

Gentry led New Orleans to the sixth seed in the Western Conference this year before they swept the Portland Trail Blazers in the first round of the playoffs.

While knocked out by the Golden State Warriors in the second round, the 63-year-old has now agreed to remain with the franchise until the end of the 2020-21 season.

"We are thrilled to have Alvin as our head coach," general manager Dell Demps said in a statement.

"He did a tremendous job last season. When we faced adversity, Alvin and his staff continually discovered ways to place the team in situations where we could be successful.

Gentry - who has compiled a 112-134 record in his three seasons in charge of the Pelicans - thanked owner Gayle Benson and believes the future looks bright, not just for the team but also the city of New Orleans in general.

"I am extremely thankful to Mrs. Benson and the Pelicans organisation for their support and confidence in my abilities to lead this team," Gentry said.

"Since day one, they have treated me like family and have provided us with the necessary resources to compete at the highest level. Mrs. Benson has been incredibly supportive of our coaching staff and players, and I couldn’t be happier to work for such an exceptional owner.

"I am excited for the great opportunities that are ahead for our organisation and the city of New Orleans."