Banjo, who joined the Saints in November, spent most of his first four years in the league with the Green Bay Packers. He was a restricted free agent for New Orleans and the new deal eliminates the need to give him an RFA tender instead.
Banjo appeared in 37 games for the Packers in four seasons, appearing in all 16 games in 2013 and 2015. He played just two games this year for Green Bay before being waived with an injury settlement in October. He later signed with the Saints and played in seven games while recording five tackles.