Financial terms were not disclosed.
Rudez is a 6-foot-10 forward from Croatia who will be able to play the stretch-four position in the NBA. According to Wojnarowski, the Pacers will pay the 28-year-old "out of a portion of their mid-level exception."
Rudez is eligible to sign a free-agent deal because he went undrafted after entering the 2008 NBA draft. He last played in the Spanish ABC league.
More from Woj:
Rudez's production for Zaragoza of the Spanish ACB has helped develop a growing level of value for him in the NBA. He shot 44 percent on three-pointers in the ACB season and 52 percent (28-for-54) in the 16-game Euro Cup.
Rudez's perimeter shooting ability should be a boost to a Pacers team that finished 22nd in the league in average three-pointers made last season.