Raptors head coach Nick Nurse confirmed Bjorkgren's interview during an appearance on SiriusXM NBA Radio with Frank Isola on Wednesday.
Since firing Nate McMillan on Aug. 26, the Pacers have cast a wide net in their head-coaching search. ESPN's Adrian Wojnarowski reported their initial list of interviews included at least 14 candidates.
On Tuesday, Chris Sheridan of BasketballNews.com reported former Houston Rockets coach Mike D'Antoni "will likely" be hired by the Pacers or Philadelphia 76ers.
Bjorkgren has worked as an assistant on Nurse's staff in Toronto for the past two seasons. The 45-year-old's first assistant coaching job was with the Phoenix Suns when he was hired to be part of then-head coach Jeff Hornacek's staff before the 2015-16 season.
The Pacers have made the playoffs in each of the past five seasons, including all four years under McMillan. They haven't advanced beyond the first round since 2014 and were swept three times in McMillan's four seasons.