The 37-year-old forward has signed a two-year dealwith the A-League club.
Del Piero left Italian champions Juventus in the summer after making more than 500 appearances for the Turin side.
He had recently been linked with a move to the Premier League before deciding to sign for Sydney.
"I am extremely happy to be joining Sydney FC," said Del Piero.
"This is a very big moment for me because I want to continue my career in a new part of the world where I can make a major contribution and help grow the game I love."
Del Piero is the latest in a list of former stars to have moved to Australia.
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