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."
Matavz joined PSV from Groningen in 2011 and scored 24 goals in 70 league appearances.