The presumptive GOP presidential nominee had originally planned to name his running mate on Friday but cancelled his press conference in New York City out of respect to the victims of the deadly attack late Thursday in Nice, France, that left more than 80 people dead.
Trump tweeted that he will formally introduce Pence on Saturday.
While Pence's selection comes as no surprise, the announcement arrived a day after key Trump aides took to Twitter to downplay the speculation.
Trump previously said Pence was on his short list for VP, along with former House Speaker Newt Gingrich and New Jersey Gov. Chris Christie.
On Friday, Pence dropped his re-election bid for governor. He has faced intense scrutiny from tech and major business leaders after signing a "religious freedom" law in Indiana last year that they viewed as legalizing discrimination against gays and lesbians. Following the backlash, Pence removed some of the law's harshest language.
While acknowledging Pence's gesture last year, Gary Shapiro, president of the Consumer Technology Association, openly asked the soon-to-be formed Trump-Pence ticket on Friday when will they announce their tech agenda? Shapiro's question comes a day after more than 100 tech leaders said in an open letter that Trump presidency would be a "disaster" for innovation.
"The tech industry hopes that in the coming days, the Trump-Pence campaign will provide clarity on where it stands on trade and when we can expect a detailed and substantive agenda that specifically outlines its positions on technology and innovation issues."
Meanwhile, Pence's Twitter account did not reflect Trump's announcement on Friday. Among Pence's tweets included his official statement on the attack in France along with three words: "This. Must. End," and his ordering of flags to fly at half-staff across Indiana.
Meanwhile, Republican National Committee Chairman Reince Priebus fired off a series of tweets Friday praising Pence.
Update, July 15 at 1:52p.m. PT: Adds comments from CTA president Gary Shapiro.