The 29-year-old played 78 Premier League matches with Cardiff City, Queens Park Rangers and Crystal Palace - scoring seven goals and making eight assists.
His most recent Premier League appearance was in January 2017. After that, he played in the Championship with Reading before moving to the MLS to join Vancouver Whitecaps in 2018 where he worked under current Wanderers boss Carl Robinson.
In 2019 he moved to South Korea where he played 13 matches for Gyeongnam FC while in 2020 he managed one appearance off the bench for Aalesund.
“Coming to the Western Sydney Wanderers is an opportunity to work again with, in my opinion, the best manager I’ve worked under and to play for the biggest club in Australia is exciting,” said Mutch via a club statement.
“I have learnt a lot from the different cultures, leagues, and playing under many top managers which I have gained a lot experience from. It’s taught me how much I love the game and to stay dedicated to it as it’s only a short career.
“I have watched the A-League here in the UK and also played in Asia in the Asian Champions League so I have seen a lot of matches and I expect it to be a very competitive league as there are many good teams in it.
“I had the opportunity to work with Robbo (head coach Carl Robinson) at Vancouver Whitecaps. He brings out the best in people as a player and a person, I am delighted to get the opportunity to play under him again.”
Robinson said Jordon brings another layer of experience and quality to the Wanderers squad.
“Jordon brings experience and quality having played at a high level and will show some of our younger players the levels that are needed day in and day out,” said Robinson.
“He is a leader by the way he trains and plays and will fit into the squad very well with his character as we continue to influence the culture and environment.”
Mutch will link up with the squad at the end of the month following his arrival in Australia and mandatory quarantine in Sydney.
The Wanderers face Robinson's former club, Newcastle Jets, this Friday.