Moala could have become an unrestricted free agent next week. The team confirmed the deal, but did not release terms.
It's the second personnel move the Colts have made in less than a week. On Friday, the Colts used the franchise tag on punter Pat McAfee.
Moala was Indy's second-round draft pick in 2009 and has 86 tackles and two sacks in 48 career games. He also scored a touchdown on a fumble recovery. Last season, Moala had 21 tackles and made eight starts before going down with a season-ending knee injury.
Before the moves with McAfee and Moala, Indy was projected to have more than $40 million to spend in free agency.