Green was delisted by Brisbane last month, after 106 goals in 81 games.
Bombers’ coach John Worsfold said Green can play an important role as the side looks to climb back up the ladder.
“The playing group is continuing to mature and driving each other to improve and maintain elite standards through hard work,” Worsfold said.
“We are all motivated by team success and building on our experiences from last season, which Josh will play an important role in.
“We will challenge Josh to work closely with Performance Coach, Hayden Skipworth, to ensure he reaches his potential through a tailored training program. Having overcome some serious injuries, we believe we can get the work into Josh that he requires to consistently play at his best.”
Green, 24, said he is delighted to be given a chance to continue his AFL career.
“I’m really grateful for the chance to revitalise my career at Essendon this season,” Green said.
“I feel that my best football is still ahead of me and I can’t wait to get in and do the hard work over the summer.
“I’m excited to join such a dynamic and talented list, and working under the great leadership of John Worsfold. I’m excited about what we can achieve as a team in 2017 and hopefully I can be part of the Club’s next chapter of success.”