Dickerson, 56, told AM 570 in Los Angeles that he and the Rams are also working on a way for him to have an official role with team.
"It feels amazing to sign this contract and officially be a Los Angeles Ram for life," Dickerson said in a statement Monday. "My passion for this organization during my playing days and for the players wearing Rams jerseys now is undeniable. This is where my career started and this is where my heart is, so closing this chapter with the Rams back in Los Angeles feels right.
"I would like to thank (owner) Stan Kroenke and the Rams for this opportunity and all of the fans for their outpouring support over the years."
Dickerson excelled with the Rams during their previous stint in Los Angeles, playing with the club for four full seasons after being selected with the second overall pick of the 1983 draft. He set the rookie single-season record for rushing yards with 1,808 in 1983 and the overall single-season rushing record with 2,105 yards in 1984, both of which still stand.
Dickerson was traded to the Indianapolis Colts as part of a blockbuster three-team deal early in the 1987 season.
Although he remained a fan of the Rams, Dickerson was also critical of the team and its front office -- specifically chief operating officer Kevin Demoff and notably former head coach Jeff Fisher. In 2016, Dickerson accused Fisher of banning him from the sidelines because of his criticism toward the team and vowed to steer clear of the club as long as the coach was employed.