Financial details were not disclosed.
"He's going to get paid well," Bulls general manager John Paxson said. "It's in line with the top coaches.
"I'm really glad he's back. This is a big thing for the franchise."
Scott Skiles is staying put in Chicago. (AP Photo/Brian Kersey)
Skiles, who led the Bulls to their playoff appearance in seven years, put an end to negotiations Monday and appeared ready to bolt the team before reaching an understanding with owner Jerry Reinsdorf during a telephone conversation on Tuesday.
"Obviously, I wasn't that optimistic yesterday," Skiles said. "If you consider the four principals – John, Jerry and (my agent Keith Glass) and I – you're talking about four pretty strong-willed grown men."
"I actually came in this morning and kind of felt bad, to say the least, about the way things have gone," Skiles admitted. "I didn't want anything to break down because, you know, sort of foolish pride on my part or some sort of immaturity on my part.
"I wanted to have a man-to-man talk with the owner of my team. We had a long talk and, you know, I don't want to say 'cleared the air,' because there wasn't like anything too serious that needed to be cleared, maybe just some small minor misunderstandings."
Chicago hired Skiles on Nov. 28, 2003, to replace Bill Cartwright, who posted a 4-10 record before being dismissed.
The Bulls finished 19-47, then improved to 47-35 this season, and clinched a playoff berth, only to lose in the opening round to the Washington Wizards.
"I'm not going to lie to you," Paxson said. "The last couple of days, I was thinking we weren't going to have him very long.
"Let's give Scott credit. He obviously wants to be here."
Skiles previously went 116-79 over portions of three seasons as head coach of the Phoenix Suns.
As a player drafted 22nd overall by Milwaukee in 1986, he averaged 11.1 points, 6.5 assists, 2.5 rebounds and 27.9 minutes in 600 games over 10 NBA seasons for the Bucks, Indiana Pacers, Orlando Magic, Washington Bullets and Philadelphia 76ers.
He still owns the league record of assists in a single game, dishing out 30 against the Denver Nuggets on Dec. 30, 1990.
with files from Sports Network
