The Brazilian joins on a deal that will keep him at the SGL Arena until June 2018.
Caiuby spent two full seasons at 2. Bundesliga side Ingolstadt, who he joined in 2012 following loan spells with the Bavarian club and MSV Duisburg.
The 25-year-old scored over 20 goals in his stint at the Audi Sportpark and is looking forward to the challenge of playing in the German top flight.
"It's nice that I get the chance to play in the Bundesliga again at Augsburg," Caiuby told Augsburg's official website. "I am delighted for this challenge."
Caiuby joins an attack that has already been boosted by the arrivals of Tim Matavz, Shawn Parker and Nikola Djurdjic as Augsburg look to improve on their eighth-placed finish last term.
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