The Blues have also retained defender Juanan Gonzalez who will join John Johnson for another season at the heart of Bengaluru's defence.
Towering at 6'4", Sydney-born Paartalu began his career in the National Soccer League, now the A-League, with Northern Spirit.
His stints in Australia included three seasons with Brisbane Roar when they played AFC Champions League football.
At Brisbane, Paartalu won two Championships and one Premiership and played 85 consecutive matches while setting an Australian record of an unbeaten streak of 36 games.
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The midfielder earned his first senior national team cap in 2012, playing in a World Cup Qualifier for Australia against Saudi Arabia.
"I was really excited by the Bengaluru FC project because it is a club that's doing really well for itself in an expanding market," he said.
"Indian football is getting bigger and bigger. It felt like the right project to get involved with. I spoke with Cameron Watson and he sold it to me in terms of where the club is. They've been very successful in the last four years and are looking to make major steps in the Indian Super League," added Paartalu.
"I've played in a lot of countries in Asia so that experience is invaluable when it comes to playing games on different continents with short turnarounds. Being 31, I've experienced football for a long time and playing in the AFC Cup will definitely suit me," he said.
Bengaluru FC coach Albert Roca said Paartalu will bring in his experience to the table as the club attempts to rebuild the squad this season.