The Worcestershire captain was released by the Royal Challengers Bangalore after last year’s competition in which he was offered very few chances to impress.
Chris Morris was the most expensive player in the auction, signing for the Rajasthan Royals for £1.6 million for the tournament which begins in April.
Tom Curran and Sam Billings were both signed by the Delhi Capitals, while their England teammate Liam Livingstone was picked up by the Rajasthan Royals who already have Ben Stokes, Jos Buttler and Jofra Archer among their thanks.
The world number one T20 batsman, Dawid Malan was signed for £150,000 by the Punjab Kings, however Jason Roy, Alex Hales and Adil Rashid all went unsold in the auction.
England have Test series against New Zealand in June, meaning some players could miss this if their teams make it to the latter stages.
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