Hayes' four-year deal is worth $22.4 million -- more than $1 million more than the $21.3 million contract that was voided on Monday, according to a news release provide by the firm that represents Hayes.
Sacramento tore up the initial deal, saying Hayes failed a physical -- a heart exam showed an abnormality that would require Hayes to undergo further testing, the Kings said. He reportedly underwent additional evaluation from specialists at the Cleveland Clinic and was given clearance to play.
"It's been an incredible week of emotional highs and lows," Hayes said in a statement released through his agency. "The Kings have been very supportive during this process and I feel very comfortable with the relationships that I have started there.
"After reviewing my options, the Kings were still the choice for me."
The 28-year-old Hayes averaged 3.4 points and 4.7 rebounds in 17 minutes per game in six seasons with Houston.
"I want to make it clear there were never any bad feelings between Chuck and the Kings," Calvin Andrews, Hayes' agent, said. "We understood the process and their medical staff had to take the necessary precautions when it came to seeing any abnormalities of the heart. We are thrilled that this was resolved so quickly, and really appreciate the opportunity that the Kings staff and the Maloof family have given Chuck."
Information from The Associated Press was included in this report.