Fabrizio Romano reports Augsburg have agreed a season-long loan with a purchase option set at €8m, without any repurchase clause for Bayern, though the Munich club will retain a sell-on percentage.
Sky reports the loan fee itself is worth €500,000. Ibrahimović, born in Nuremberg, was due to complete his medical on Monday afternoon, with the possibility he could feature against his parent club later this season should everything proceed smoothly.
The 20-year-old had returned to Bayern hoping to build on a solid loan spell at Heidenheim, but could not force his way into Vincent Kompany's plans during pre-season, prompting the club to sanction another temporary exit rather than keep him on the fringes of the first-team squad.
He remains under contract at Bayern Munich until 2028, meaning the club retains long-term control over his development even as he seeks regular football elsewhere in the Bundesliga.
The move continues a familiar pattern for promising young players at Bayern, who have shown a consistent willingness to loan out academy graduates and fringe first-team members to Bundesliga rivals in search of senior minutes, rather than risk their development stalling on the bench.
For Augsburg, Ibrahimović's arrival adds a versatile attacking option with Bundesliga pedigree to a squad looking to build on last season's positive form.
Ibrahimović progressed through Bayern's own academy before his loan move to Heidenheim, where he contributed regularly in the Bundesliga as the newly promoted club fought to establish itself in the top flight.
His inability to translate that form into a first-team opportunity back in Munich reflects the sheer strength of competition for places in Bayern's squad, and Augsburg will hope a fresh environment and consistent playing time can help the young right-footer rediscover the level he showed last season.