Lee, who played in 127 matches for South Korea before retiring from international football earlier this year, had inked a one-year deal with an option of a one-year extension, the Yonhap news agency quoted the player's agency as saying. Other terms of the deal were not disclosed.
"I am happy with the atmosphere in Vancouver, and I was also impressed with the management's professionalism," Lee said in a statement released through the agency. "I am going to play hard and help the team post a good record next season."
Lee played in three World Cups and was part of Guus Hiddink's side that reached the 2002 semi-finals on home soil.
He joined Dutch club PSV Eindhoven in 2003 and moved to English side Tottenham two years later, where he was a member of the League Cup winning side of 2008. Lee has also played for German club Borussia Dortmund and Saudi Arabia's Al Hilal.
The 34-year-old will join former Spurs team-mates Robbie Keane and Teemu Tainio in the MLS, with Republic of Ireland skipper Keane joining LA Galaxy over the summer and Finnish midfielder Tainio moving the New York Red Bulls at the start of the 2011 season.
