"Over the past couple days, I've been asked: 'Why Milwaukee?' My answer is simple: there is no place I'd rather be," Kidd wrote in a letter to the Bucks fans.
"Over my twenty years in the NBA as a player and a coach, I have always been impressed with the level of support that Bucks fans have given this team, in good times and bad.
"With a talented roster, new owners that are passionate about being successful in Milwaukee, and a great fan base, we have the makings of something special here and I'm proud to be leading this new era of Bucks basketball."
Kidd led the Nets to the playoffs in his first season as a coach, but his side were defeated by the Miami Heat in the Conference semi-finals.