The 40-year-old former Barcelona star joined Sao Caetano as a free agent Wednesday after terminating his contract with Angola's Kabuscorp in November, reports Xinhua.
"This is a big signing and will give us fantastic quality in midfield," Sao Caetano president Nairo Ferreira de Souza said.
"He is also going to provide great leadership to the younger players. We are very satisfied with his signing."
Sao Caetano beat off interest from Rivaldo's home team Santa Cruz, but the playmaker said his plan was to end his career with the club in northeastern Brazil.
"I would like to thank all of the Santa Cruz fans who campaigned for my return," Rivaldo wrote on Twitter. "Unfortunately this year it couldn't be, but if all goes to plan I will finish my career there next year."
Voted FIFA's world player of the year in 1999, Rivaldo was a part of Brazil's 2002 World Cup-winning team and scored 34 goals in 74 matches for his country.