Kings president of basketball operations Geoff Petrie announced the multiyear agreement Thursday night. Terms were not immediately available.
The Kings voided a $21.3 million, four-year contract with Hayes on Monday, saying he failed a physical. The team previously said a heart exam on Hayes showed an abnormality that would require further testing.
Hayes reportedly underwent additional evaluation from specialists at the Cleveland Clinic and was given clearance to play.
The 28-year-old Hayes averaged 3.4 points and 4.7 rebounds in 17 minutes per game in six seasons with Houston.