Hudson and the Blue Jays signed a one-year contract worth $1.5 million, the team announced Monday, hoping he can add to the bullpen after he pitched for the National League champion Los Angeles Dodgers.
While Hudson joined the roster, the Jays placed second baseman Devon Travis on the 60-day injured list Monday because of an inflamed left knee.
The team also announced it has inked veteran reliever John Axford to a minor league contract. Toronto released Axford on Saturday after he suffered a stress reaction in his right elbow.
By signing him back instead of keeping him on the roster, the Blue Jays avoid having to pay him a $100,000 bonus.
Axford was 4-1 with a 5.27 ERA last year for the Blue Jays and Dodgers, who acquired him July 31.
Last season, the 32-year-old Hudson went 3-2 with a 4.11 ERA with the Dodgers, throwing 46 innings with 44 strikeouts and 18 walks.