31 March, 2017
Adam Zagoria of FanRag Sports confirmed the move. There is a team option in place for the third year, according to sources.
Stephenson played the best years of his career in Indy before signing a three-year, $27 million contract with the Charlotte Hornets that signalled the rapid decline into National Basketball Association obscurity for the swingman.
Since leaving Indiana, Stephenson has played for the Hornets, Los Angeles Clippers, Memphis Grizzlies, New Orleans Pelicans and Minnesota Timberwolves.
While Stephenson had a rocky first tour in IN, he is just 26 years old and is likely coming to the Pacers with something to prove.More news: Ward leads Michigan State's furious rally past Miami
Indiana Pacers guard Rodney Stuckey will miss the next four to six weeks after straining his left patellar tendon in a game against Philadelphia on Sunday.
Stephenson was originally drafted by the Pacers in the 2010 draft with the 40th overall pick.
Few question Lance Stephenson's talent, as he is an explosive player who has very good all-around skills. He surprised many by becoming a key player in IN in his third year with the team.
Reaction to Stephenson's return has been mixed by fans. George knows what his former teammate can bring, and he's clearly excited to have him back.
In the playoffs, he was even better - posting averages of 10.5 points, 6.5 rebounds and 3.4 assists as he helped the Pacers make consecutive runs to the Eastern Conference finals. He never got to completely fill Stephenson's void, as George was hurt in his first year and the last year of the West-Hibbert era.