With Mateu's signing, the Goan franchise has now taken their international signing to six players.
Others who have been signed, include Brazilian striker Reinaldo and Victor Simoes, Brazilian goalkeeper Elinton Andrade, defender Gregory Arnolin and Bruno Pinheiro (both retained), the club said in a release.
The signing of Mateu gives coach Zico options in the midfield.
A product of Barcelona's famed youth academy, La Masia, Mateu made his senior debut in the final game of the 1997-98 season.
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Since leaving Levant in 2005, Mateu had spells in various clubs across Spain, the last with second division side Girona.
Maetu, a Copa del Rey winner with Espanyol in 2005-06, was among the influential players at Atletico de Kolkata and was coach Antonio Lopez Habas' first choice in the midfield.
Brazilian striker Victor Simones who was signed after getting the go-ahead from coach Zico will add more teeth to their strike force.
He had a successful spell at Al Ahli where he scored 43 goals in 58 matches for the Saudi Club and also finished as the joint top-scorer in the league in the 2011-12 season, the release added.