Indiana selected Leonard, a forward out of San Diego State, with the 15th pick in the first round Thursday night. The 6-foot-7 forward averaged 15.5 points and 10.6 rebounds last season. He was a second-team All-American who helped the Aztecs win a school-record 34 games.
Hill averaged 11.6 points and 2.5 assists per game last season, his third with the Spurs.
The Spurs also received the rights to 42nd pick Davis Bertans and 2005 second-round pick Erazem Lorbek from the Pacers.
Chad Ford is the NBA Insider for ESPN.com. Information from The Associated Press was used in this report.