Financial terms of the deal were not announced Monday.
Reid joined the Panthers in Week 4 of last season after spending five seasons with the 49ers. He started all 13 games played and had 73 tackles, five pass breakups, one interception and a sack.
The Panthers made news when they signed Reid to a one-year deal last October. He was an unrestricted free agent and didn't attend training camp last summer - something Reid believes was a direct response by NFL owners to his decision to kneel for the national anthem alongside former teammate Colin Kaepernick in protest of social and racial injustice.
Reid has an ongoing lawsuit against the NFL owners for colluding to keep him out of the league.
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