The 31-year-old endured a somewhat chequered 2015, signing initially for Hull KR and then for Castleford, but hardly playing at all.
Wire coach Tony Smith is looking forward to working with Bailey again, after previously coaching him at Leeds.
“It is no secret that Ryan has had a chequered past,” Smith told his club’s official website.
“However he is fully aware of the special conditions set out within his contract and the standards expected of all Warrington Wolves players.
“During my time coaching Ryan at Leeds we had a fantastic relationship and I never experienced any issues. He is fully aware that some of his past behaviours were unacceptable.
“However at times we need to give people a second chance. I have every faith that we can develop his game and see the solid and hardworking player I know he can be.
“Ryan’s signature is not going to impact greatly on our salary cap but his experience and attributes will make him an extremely valuable squad player.
“I’ve spoken to the players and explained the rationale behind the signing, they were very supportive and look forward to working with Ryan in the upcoming season.”
Bailey is looking forward to working with Smith again.
“I am really excited by my move to the Warrington Wolves and working under Tony again,” he said.
“There is a strong and exciting squad being assembled for 2016. It is no secret that in the past I have had some issues, but all that is now behind me.
“I had some of my best form under Tony, I think he knows how to get the best out of me. I can’t wait to meet up with the boys, knuckle down and get stuck in to pre-season.
“I’d like to thank Tony and Warrington Wolves for this fantastic opportunity.”