Brown, 25, is averaging 6.6 points and 2.1 assists in 14.9 minutes per game. He starred at Westchester High and became the all-time leading scorer at Cal State Fullerton, but was undrafted after college. Brown played for Alba Berlin of Germany in 2007-08 before signing as a free agent with the Sacramento Kings.
The deal brings the Hornets' player payroll below the $69.9 million luxury tax threshold.
New Orleans has shed millions in payroll through several trades, including Monday's deal that sent shooting guard Devin Brown to Chicago and earlier trades that sent former starting shooting guard Rasual Butler to the Clippers and reserve center Hilton Armstrong to Sacramento.
Information from The Associated Press was used in this report.