Financial terms were not disclosed by the team for Ivory, who was released by the Jacksonville Jaguars last month.
Ivory, who visited with the Bills and Cleveland Browns after being cut by Jacksonville, is in line to be the primary backup to workhorse LeSean McCoy next season. Mike Tolbert, Taiwan Jones, and Travaris Cadet are all scheduled to be free agents.
McCoy, 29, rushed for 1,138 yards with six touchdowns in 16 games last season. He also had 59 receptions for 448 yards with two scores.
Ivory recorded career highs in carries (247), rushing yards (1,070) and rushing touchdowns (seven) with the New York Jets in 2015, but failed to produce at that level with the Jaguars after signing a five-year, $32 million contract -- with $10 million guaranteed. He averaged less than four yards per carry during his two seasons with Jacksonville.
The Jaguars selected Leonard Fournette with the fourth overall pick of the 2017 NFL Draft, and the 23-year-old paid immediate dividends by carrying the ball 268 times for 1,040 yards with nine rushing touchdowns. T.J. Yeldon rushed 49 times for 253 yards and two touchdowns this past season and Corey Grant had 30 carries for 248 yards.
Ivory totaled just 821 rushing yards and four touchdowns over the last two seasons, with 382 and one score coming in 2017. He was limited to just one carry for two yards in Jacksonville's wild-card victory over the Bills.