Financial terms were not released.
The six-time All-Star was named the NHL's MVP while with the Philadelphia Flyers in 1994-95, and the following season recorded career-highs of 47 goals and 68 assists.
Lindros, 32, an 11-year veteran, has registered 90 points in a season only once since then because of injuries. In 678 career games with the Flyers and Rangers, Lindros racked up 356 goals, 461 assists and 1,285 penalty minutes.
The 6-foot-5 inch, 237-pounder has suffered eight documented concussions.
"It's about time. This is great. I'm really excited about it. Obviously, it's a dream come true," Lindros told the Toronto Globe and Mail.
Lindros, who signed late Thursday, is a former No. 1 overall pick.
2014: The Year in Music [PHOTOS]