Phillips joined the Saints during Week 10 of last season, when he was claimed off of waivers from the Denver Broncos.
The 6-foot-5, 251-pound Phillips started four of eight games last season with New Orleans, catching five passes for 32 yards. Including his time with Denver, Phillip played in 16 games last season and caught 10 passes, including one touchdown.
Now heading into his ninth pro campaign out of Virginia, Phillips has appeared in 111 games with Dallas, San Diego, Denver and New Orleans. He has 39 career starts and also has played on special teams.
The contract was announced by Saints general manager Mickey Loomis on Wednesday.