Wojnarowski reported Miles will sign a three-year, $25 million contract with a player option for the final season. The move is contingent on Toronto's pending trade to ship DeMarre Carroll to the Brooklyn Nets.
Shams Charania of The Vertical first reported on the talks.
The 30-year-old Miles is an unrestricted free agent who spent the last three years with Indiana, averaging 12 points per game with 37.4 percent three-point shooting.
The Raptors struggled with depth last year and finished just 21st in the NBA in made three-pointers. Miles would be a valuable addition off the bench who can provide instant scoring.
Tim Bontemps of the Washington Post broke down the deal:
Norman Powell is likely to take on a bigger role in Toronto, while Delon Wright and Fred VanVleet should also get plenty of playing time next season.
On the other hand, the Pacers are likely headed toward a rebuild after dealing Paul George. They don't need a high-price veteran scorer like Miles when they can instead start developing a young core.
Joseph, 25, is coming off his best season, with career highs of 9.3 points, 3.3 assists and 2.9 rebounds per game, after six years in the league. He also won a title with the 2013-14 San Antonio Spurs.
If he can continue to develop, he could become an impact player next season.