Melo played for Brazil at the 2010 World Cup, where he was sent off in their quarter-final exit to the Netherlands.
He has also played for Gremio, Cruzeiro and Flamengo in his homeland.
"I am making a dream come true returning to Brazil at an age where I can still run and do what I most love," the 33-year old said in a statement posted on the club's website.
"It's a great honour to wear this shirt."
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(Reporting by Andrew Downie; editing by Toby Davis)
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