Hibbert just completed his seventh season in the NBA after being selected in the first round of the 2008 draft. The 28-year-old is considered one of the best rim protectors in the league.
He signed a four-year, $58 million max contract in July 2012.
Over 76 games last season, Hibbert averaged 10.6 points, 7.1 rebounds and 1.6 blocks while shooting 44.6% from the field as the Pacers posted a 38-44 record and missed the playoffs.
Indiana selected Texas center Myles Turner with the No. 11 pick in Thursday's draft.