Arana, who largely operates from the right wing, last played for Brisbane Roar in the A-League and Asian Champions League last season where he racked up five assists and made 24 appearances.
The Spaniard comes with plenty of experience in the top two divisions of Spain where he has turned out for a host of clubs with a combined total of over 230 appearances and 40 goals to his name.
The Seville native was a product of the Betis youth system before moving to Castellon where his impressive performances in the second tier of Spanish football led to a move to Racing Santander.
Speaking of the prospect of coming to India, the 32- year-old midfielder said: "I'm pleased to have signed for FC Goa. The league in India is getting a lot of attention and I cant wait to come and experience it for myself.
"I have heard a lot of good things about FC Goa and with Sergio Lobera as the head coach, I'm sure we can mount a very strong challenge for the top honours. I thank the club for placing their faith in me and will do my utmost to ensure we can achieve the desired results.