The 33-year-old Dutch right-back, who spent seven seasons at Augsburg, including six as club skipper, has signed a two-year deal until summer 2019 and will wear the No.3 shirt.
"After seven fantastic years, it feels a bit strange that I won't be wearing the FCA shirt any more," Verhaegh told Augsburg's official club website. "But I consciously made this decision because I want to do something new as I reach the end of my career."
Verhaegh joined Augsburg from Vitesse Arnheim in summer 2010, and played an integral role in their maiden promotion to the Bundesliga that season. The three-time Netherlands international turned out 224 times in all competitions for Die Fuggerstädter, scoring 19 goals - 15 of which were penalties - in 173 Bundesliga appearances.
"Paul played a huge part in the development of FCA in the last seven years because he always gave everything for the success of the team, on and off the pitch," commented Augsburg director of sport Stefan Reuter. "We thank Paul from the bottom of our hearts for his service to FCA and wish him all the very best, except in meetings against us of course."