The Iffley Road based club are one of three new teams in Championship 1 this season.
Petelo said: “Being asked to join Oxford RL in the inaugural season is both exciting and a privilege. I’m looking forward to playing under Tony and can’t wait for the season to get underway.”
“It is always extra tough being the new team on the block, but having met the squad and staff, i’m sure we will be the team to watch for the coming season.”
A former Bracknell rugby union player, Peleto turned out for London Skolars in a pre-season friendly in 2012.