The team has yet to make the signing official.
Augustin, 25, would battle with the newly acquired Dwight Buycks to back up starter Kyle Lowry.
In 76 regular-season games, Augustin averaged 4.7 points and 2.2 assists with Indiana last season. He also appeared in 19 playoff games during the Pacers' run to the Eastern Conference finals.
The Bobcats drafted Augustin in 2008 with the ninth overall pick from the University of Texas. He spent four seasons with Charlotte before signing with the Pacers as a free agent last summer.