The Pacers released a statement on the NBA's decision:
Evans was set to become a free agent this offseason after signing a one-year deal with Indiana last offseason.
Alex Kennedy of HoopsHype reported that Evans will be eligible to apply for reinstatement in two years.
This season, the Pacers suspended Evans one game for being late to practice.
The 29-year-old veteran served primarily in a reserve role for Indiana this season, averaging 10.2 points, 2.9 rebounds and 2.4 assists per game.
That represented a steep drop-off from 2017-18 with the Memphis Grizzlies when he averaged 19.4 points, 5.2 assists and 5.1 rebounds per game.
Evans' best NBA season to date still stands as his first one when he put up 20.1 points, 5.8 assists and 5.3 rebounds per game for the Kings in 2009-10 after they selected him with the No. 4 overall pick in the 2009 NBA draft. Evans was named NBA Rookie of the Year.
During his 10-year NBA career with the Kings, New Orleans Pelicans, Grizzlies and Pacers, Evans owns averages of 15.7 points, 4.8 assists and 4.6 rebounds per game.