Jun 2, 2008 - 12:13 PM
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Terms of the deal were not disclosed, but the Orlando Sentinel reported that the deal should run for at least three seasons following next year.
Under the watch of Smith, the Magic had their most successful season in more than a decade, going 52-30 and capturing the Southeast Division title in 2007-08.
It was the first division crown for the franchise since 1995-96. In the postseason, Orlando topped Toronto in the opening round, the team's first series win since 1996.
Smith was busy prior to this season, signing All-Star center Dwight Howard to a five-year extension worth approximately $85 million, bringing in former All-Star Rashard Lewis in a sign-and-trade deal with Seattle and convincing Stan Van Gundy to return to coaching.
"Otis has brought great energy, dedication, leadership and vision to our basketball operations," Magic president Bob Vander Weide said. "He has us moving in a very positive direction and toward our ultimate goal of winning an NBA championship."
A former player on Orlando's expansion team in 1989-90, Smith was named the Magic's general manager in May 2006.
Also, the Magic signed assistant general manager Dave Twardzik to a contract extension.
Twardzik had served as the co-general manager with Smith after John Weisbrod resigned in May 2005 before opting to take his name out of the running for the full-time GM position.
