The Pacers have exercised the third-year option on Sheppard's contract Friday, Brett Siegel of ClutchPoints.com reports.
Sheppard will start Saturday's Game 3 against the Celtics, Tony East of SI.com reports.
Sheppard is not in the starting lineup to face the Bulls on Wednesday.
Sheppard notched five points (2-6 FG, 1-5 3Pt), one rebound, one assist and one steal across 20 minutes during Monday's 108-103 loss to the Cavaliers.
Sheppard (illness) is questionable for Tuesday's game against Dallas.
Sheppard (illness) isn't with the team for Sunday's game in San Antonio, Dustin Dopirak of The Indianapolis Star reports.
Sheppard (illness) is questionable for Sunday's game against the Spurs.
Sheppard (illness) will not play in Friday's game versus the Pelicans, Tony East of SI.com reports.
Sheppard is listed as questionable for Friday's game versus the Pelicans due to an illness.
Sheppard had 15 points (5-6 FG, 5-5 3Pt), one rebound, four assists and two steals across 12 minutes during Sunday's 133-111 victory over Dallas.