Lamb produced career highs in minutes (28.5), points (15.3) and rebounds (5.5) while ranking No. 18 in ESPN's real plus-minus among shooting guards this past season for the Charlotte Hornets.
Lamb will join Malcolm Brogdon in Indiana, who agreed to a four-year deal with the Pacers, league sources told Wojnarowski.
Lamb originally was selected 12th overall in 2012 by the Rockets, but he was traded a few months later to the Oklahoma City Thunder as part of the James Harden blockbuster. Lamb spent three inconsistent seasons in Oklahoma City, then was sent to Charlotte in June 2015, before signing a three-year extension with the team a few months later.
Overall, the 26-year-old Lamb is averaging 10.7 points per game while shooting 49.9% from the field and 33.9% from 3-point range. His 89.9 free throw percentage ranked sixth in the league this past season.