Much like the signing of Frenchman Florent Malouda on Sunday, the Dynamos made the announcement ahead of an English Premier League game - between Arsenal and Liverpool at the Emirates stadium.
The 34-year-old Riise was a free agent after his contract with Cypriot side APOEL Nicosia was terminated by mutual consent.
Riise joined Liverpool from Monaco in 2001 and scored on his debut as the Reds beat Bayern Munich 3-2 to win the European Super Cup - at Monaco's Stade Louis II.
Commenting on his signing with Delhi Dynamos, Riise said, "I am super excited to have joined Dehli Dynamos. I am a person who loves a new challenge, to see and experience different cultures. Roberto Carlos has been one of my heroes growing up as a left back. I'm honoured to have him as a coach, and can't wait to give my all for him and the team. I'm thankful for this opportunity and look forward to start training, meet the other players and staff. See you soon Dynamos supporters."
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Riise's performances with his boyhood club Aalesund made him a hot prospect in Europe with Monaco FC signing the fullback in 1998 where he won the league and his exploits at the French club earned him a move to English giants Liverpool FC.
Riise is also the most capped Norwegian international, making 110 appearances and scoring 16 goals for his country.