Silas guided Charlotte to a 7-59 record in his first full season with the Bobcats in a lockout-shortened 66-game 2011-12 season where the team's .106 winning percentage set a new mark for futility.
"I would like to personally thank Paul for everything he has done for this team under some pretty unique circumstances," Rod Higgins, the Bobcats' president of basketball operations, said.
"We have been fortunate to have someone of his character associated with this franchise and we hope he will continue to be a valuable resource to us in the future."
Silas, 68, was named interim coach of the Bobcats in December 2010 and led that team to a 25-29 record over the remainder of the 2010-11 season. The interim title was removed from his position in February of that season.
He compiled an overall record of 32-88 with the Bobcats, who have qualified for the playoffs only once.
In 11 seasons as an NBA head coach, Silas has a career record of 377-531 following stints with the Clippers, Hornets, Cavaliers, and Bobcats.
Silas was a two-time All-Star and three-time NBA champion as a player.