The Golden State Warriors and Fesenko mutually canceled their plans in December to finalize a one-year deal worth just under $1.1 million, partly because Fesenko needed additional time to get into game shape after September knee surgery.
Fesenko was also courted heavily by the Dallas Mavericks in December but remained unsigned until this week, when he received strong interest from Boston and Indiana.
The 7-foot-1, 290-pounder ultimately decided to choose the Pacers, who announced Thursday that veteran big man Jeff Foster is retiring because of persistent back trouble. The deal is scheduled to be finalized Friday, sources said.
The Celtics responded by landing center Ryan Hollins, who was waived by Cleveland after the trade deadline. Coach Doc Rivers confirmed the move, but the signing won't be official until the team makes a corresponding roster move.
Fesenko was injured playing for Mike Fratello-coached Ukraine during the European Championships late in the summer. He played sparingly in four seasons with the Utah Jazz after being taken in the second round of the 2007 NBA draft.
ESPNBoston.com's Chris Forsberg contributed to this report.