Brooks and the Pacers are progressing in negotiations, and a formal agreement is likely to come Monday, sources said.
Brooks, 31, would give the Pacers a dependable backup point guard alongside Jeff Teague and Joe Young. He has spent the past two seasons with the Chicago Bulls.
Indiana also looked into the possibility of re-signing guard Ty Lawson, who has engaged in talks elsewhere as well, sources said.
Brooks, a 6-foot guard known for his quickness and outside shooting, has averaged 10.7 points and 3.3 assists in his eight NBA seasons. He won the Most Improved Player award in 2010.