The deal was earlier reported by the Orlando Sentinel.
Vogel's deal is for four years and worth $22 million, according to a TNT report, and later confirmed by ESPN.
Sources had told ESPN.com on Wednesday night that the Magic believed they were Vogel's preferred destination and were positioned to complete a deal with him.
The Magic moved quickly to replace Scott Skiles, who resigned as the team's coach last week.
Team officials sped up their search because Vogel had received interest from the Memphis Grizzliesand Houston Rockets, who have coaching vacancies. The New York Knickswere also interested in Vogel but instead hired Jeff Hornacek.
Vogel, 42, fits the profile Magic officials set for Skiles' successor: a coach who emphasizes defense and relates well to players.
"Sort of the fulcrum of what we're looking for," general manager Rob Hennigan said earlier this month "is someone who puts an emphasis on the defensive end of the floor, someone who puts an emphasis on player development and also someone who puts an emphasis on building lasting connections with the players on our roster."
In six seasons as Pacers coach, Vogel had a 250-181 regular-season record and a 31-30 playoff record, losing in Game 7 of the first round to Toronto this season.
The Pacers averaged 102.2 points per game this regular season, 17th in the NBA. They averaged 93.7 per game in the postseason, which put them 12th out of 16 teams.
Information from ESPN's Marc Spears and Brian Windhorst was used in this report.
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