By Eurohoops team/ info@eurohoops.net
The agreement, which contains a player option for the third year, was struck as NBA free agency opened Saturday at 12:01 a.m. ET.
It came just hours after the Timberwolves traded point guard Ricky Rubio to the Utah Jazz for a protected 2018 first-round pick via the Oklahoma City Thunder.
That freed up cap space for Minnesota to be aggressive in free agency, and Teague was a target.
The 29-year-old averaged 15.3 points and 7.8 assists in 82 games in 2016-17 for the Indiana Pacers, his first year in his hometown of Indianapolis after seven seasons with the Atlanta Hawks.