The Pacers have moved to address a lack of shooting on the roster, reaching deals with Miles and Croatian Damjan Rudez on Wednesday.
Miles, a 6-foot-6 shooting guard, averaged nearly 10 points per game while shooting 39.3 percent on 3-pointers for the Cavaliers last season. In nine NBA seasons, Miles has averaged 8.9 points per game.
The Indianapolis Star reported Miles had an agreement with the Pacers.
The Pacers are working to re-sign free-agent guard Lance Stephenson, too. Stephenson has found a cool market that's unsure about his maturity, and teams are hesitant of aggressively pursuing him with significant long-term deals, sources told Yahoo Sports.
The Pacers signed a one-year deal with a partial guarantee with undrafted rookie Shayne Whittington of Western Michigan on Wednesday, his agent, Ron Shade, told Yahoo Sports. Whittington is a 6-foot-11 forward with tremendous 3-point shooting skills, something that caught the Pacers' attention at the Portsmouth Invitational Tournament in April. Whittington suffered a knee injury in workouts and isn't expected to be back on the floor until early 2015.