Brown was taken with the number seven overall pick last month after he totaled 13 sacks and 170 tackles in 53 games over a four-year career at Auburn.
His agent, Drew Rosenhaus, told ESPN on Friday the deal had been reached.
The Panthers believe Brown can make an immediate impact playing alongside Pro Bowl defensive tackle Kawann Short, who spent last season on injured reserve recovering from a shoulder injury.
In their first draft under new coach Matt Rhule, the Panthers became the first team in the common draft era – since 1967 – to use all seven picks on defensive players.
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