Humphries led the expansion team to a 25-25 record last season.
Bighorns president Stuart Katzoff said he's thrilled to have him back. He said Humphries he is well-respected around the league. He said his playing career makes him an excellent leader to develop future NBA stars.
Humphries played at Colorado before Phoenix made him the 13th pick overall in the 1984 NBA draft. He averaged more than 11 points and five assists per game during 11 years with the Suns, Bucks, Jazz and Celtics.
Reno will be affiliated next season with the Sacramento Kings and Orlando Magic.
The terms of Humphries' contract were not disclosed.
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