The Estonia international has agreed to join the Bundesliga club after a seven-year spell in the EredivisieAugsburg have signed Ragnar Klavan to a two-year deal after an early release was negotiated from his existing contract at AZ.
The centre-back enjoyed a three-year spell with the Alkmaar side, but has welcomed a move to the Bundesliga with open arms.
"I am happy that the deal has gone through," Klavan told Augsburg's official website.
"I am looking forward to the challenge offered to me by Augsburg. The Bundesliga has a great reputation as one of the top leagues in Europe.
"I hope I can help Augsburg achieve their goals next season."
Augsburg boss Markus Weinzierl was keen to add more strength in depth to his side after finishing 14th in the Bundesliga in 2011-12.
"Ragnar Klavan is a versatile defender. He will mainly operate in the centre of defence and is a good signing for a team like us.
"We are delighted to have signed him."