Funchess, a second-round pick in 2015, spent the first four years of his career with the Carolina Panthers. His most productive season came in 2017 when he recorded 63 receptions for 840 yards and eight touchdowns.
The 24-year-old's production fell off in 2018, though, and his playing time was cut substantially down the stretch.
Giving Funchess the potential to earn $13 million on a short-term deal would appear to suggest that Indianapolis is hoping he'll fill the need for a No. 2 receiver opposite T.Y. Hilton.
The Colts haven't had a wide receiver other than Hilton top the 500-yard mark since Phillip Dorsett did it in 2016.