Augustin will back up starter Kyle Lowry next season.
Augustin played in 76 regular-season games for the Indiana Pacers a season ago, and 19 playoff games in the team's run to the Eastern Conference finals. He averaged 8.2 points in the East semifinals victory over the New York Knicks.
Augustin, 25, played four seasons with the Charlotte Bobcats before signing with Indiana as a free agent last summer. In his best season, Augustin averaged 14.4 points and six assists in 2010-'11 for Charlotte.
The Bobcats selected Augustin with the ninth overall pick in the 2008 NBA draft out of the University of Texas.
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