The 25-year-old Slovenia international has joined the German club on an undisclosed fee.
And Matavz - who only made 15 Eredivisie appearances for PSV last term - cannot wait to get going at his new club.
"I look forward to the new challenge in the German Bundesliga," Matavz told Augsburg's official website.
"It's nice that I have only missed the first few days of preparation.
"[Now I will] get to know my new colleagues and the environment at FCA in the next few weeks and integrate myself into the team, so that we can successfully start the season."
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