The game will take place at the New Orleans Arena on February 17.
The decision has also renewed hopes the Hornets will be playing in the city next season.
Quoted in the US press, Doug Thornton, regional vice president of Arena operators SMG, said: “The NBA would not want to award an All-Star game to a city that was losing its team, so it certainly bodes well for us in that respect.”
New Orleans is to host the 2008 NBA All-Star game in an event set to generate up to $100m for a city still rebuilding after the hurricane which caused such widespread flooding and damage.
