Cahill's has finalised his move to the "cash-rich" ISL, which has been going since 2014 and boasts players of the calibre of Dimitar Berbatov (ex-Tottenham striker) and Wes Brown (ex-Manchester United defender).
Cahill, who is Australia's leading international goalscorer, retired from the Socceroos with 50 goals in 107 caps.
A move to Jamshedpur FC could provide a much-needed boost to the club which scored the ISL's second lowest amount of goals in the 2017-18 season.
Cahill, a former Premier League player with Everton, spent time at Melbourne City and with English second-tier outfit Millwall in the lead up to the FIFA World Cup in Russia.
However, he was used only as a substitute in Australia's final group match against Peru by interim coach Bert van Marwijk.
"I know I can help the team on and off the park with my leadership and experience," said Cahill on social media after the announcement.
"I want to help grow the game and encourage young kids to play football. I'm looking forward to beginning this next adventure, meeting my teammates at training camp in Madrid."
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