"Kaz is an ideal fit for our club," General Manager Ed Wade said Sunday, calling Matsui "an outstanding defensive second-baseman."
The contract was reported to total $16.5 million.
Matsui, 32, batted .288 with four home runs and 37 RBI for the Colorado Rockies in 2007. He stole 32 bases, the best total of his career.
Matsui has also played for the New York Mets.