Free-agent forward Bojan Bogdanovic has agreed to a two-year, $21 million deal with the Indiana Pacers, league sources told ESPN on Friday.
The second year includes a partial guarantee of $1.5 million, sources told ESPN.
The Wizards renounced his rights Friday and allowed him to become an unrestricted free agent.
Washington dealt a lottery-protected first-round pick, Andrew Nicholson and Marcus Thornton for Bogdanovic at the trade deadline last season in an effort to bolster its scoring off the bench.
The restricted free agent averaged 12.7 points while making a career-high 39.1 percent of his 3-point attempts in 26 games with the Wizards while playing alongside John Wall and Bradley Beal.
Bogdanovic has averaged 11.3 points in his three NBA seasons.
Information from ESPN's Ohm Youngmisuk was used in this report.