The veteran point guard, who was released by the Toronto Raptors on Monday, can clear waivers at 5 p.m. ET Wednesday and be free to sign.
Augustin would give the Bulls four healthy point guards on the roster. They already have veterans Kirk Hinrich and Mike James as well as second-year man Marquis Teague. James and Teague have played sparingly over the past few weeks as the Bulls have dealt with the reality of losing Derrick Rose again to season-ending knee surgery.
Teague has struggled with his confidence and was sent to the D-League last week before being recalled the same day after it was revealed that James had a sprained knee.
Augustin, the ninth overall pick in the 2008 draft by the Charlotte Bobcats, has career averages of 9.4 points and 3.9 assists. His best season was 2010-11, when he averaged 14.4 points while playing all 82 games for the Bobcats. He spent last season with the Indiana Pacers and joined the Raptors before this season. He averaged 2.1 points in 10 games with Toronto.
Yahoo! Sports earlier reported the Bulls' interest in Augustin.