Davis is coming off a career-best season with the Panthers in which he ran for 642 yards and six touchdowns.
Running back Mike Davis is signing a two-year deal worth $5.5 million with the Falcons, according to NFL Network's Ian Rapoport.
The deal reportedly includes $3 million fully guaranteed.
Davis appeared to confirm his decision to join Atlanta on Tuesday morning by taking to Twitter following news of the deal to tweet, "Let's go!" In a subsequent tweet, he resurfaced an old tweet in which he said "I love Atlanta so much bro it's crazy."
Davis is coming off a career-best season with the Panthers in which he ran for 642 yards and six touchdowns. He emerged as Carolina's lead running back following Christian McCaffrey's ankle injury in Week 2.
With both Todd Gurley and Brian Hill still unsigned, Davis, who turned 28 in February, would appear to be Atlanta's starter at the position.
Carolina claimed Davis off waivers from the Bears during the 2019 season. Davis had previously played with the 49ers and Seahawks.
On Tuesday morning, Atlanta also reportedly signed linebacker Barkevious Mingo to a one-year deal.
The Falcons finished 4-12 last season and hired former Titans offensive coordinator as their next head coach Arthur Smith this offseason.