The former New South Wales State of Origin half-back, who represented the Kangaroos once in 2008, has captained Canberra Raiders for the last three years.
However, he has been allowed to move overseas and becomes the latest recruit for Chris Chester’s side.
Campese – nephew of Wallabies legend David – will help replace fellow countryman Travis Burns, sold to St Helens, and offer options at hooker given England international Josh Hodgson’s sale, coincidentally to Canberra.
Campese, 30, had been in talks with big-spending Salford Red Devils so his switch to East Yorkshire, subject to obtaining a visa, is a significant coup.
“I’m excited and am looking forward to experiencing the Super League competition,” he said.
“My main goal is to try to help the club to go up the table and improve on where they finished last season. Leadership is something I pride myself on and I love working with the younger players.
“I’ve signed up for one year which was a big thing for me. I’d like to stay longer as I feel I’ve some good footy left in me, but it’s down to me to prove that.”
Chester lauded Campese’s “exceptional” kicking game and added: “Terry is a true professional who has played at the very highest level. He’ll bring a wealth of knowledge to the squad.
“We’ve lost a bit of experience from last season and it was important we brought in players with leadership qualities to complement a young and exciting crop of players at the club.
“He’s a great organiser who can guide us around the park; bringing in a playmaker of Terry’s calibre was an opportunity we couldn’t afford to pass up.
“He gives us some strength in depth and competition for places in the halves.”