General manager Gar Forman announced the signing Tuesday. A five-year veteran guard from Italy, Belinelli averaged 11.8 points and played in all 66 games for the New Orleans Hornets last season.
The Bulls will be Belinelli's fourth NBA team. Best known for his perimeter shooting, Belinelli has converted 39.3 percent from 3-point range.
Chicago will start the season without injured All-Star Derrick Rose and is trying to rebuild its bench. So far this offseason, the Bulls have lost C.J. Watson, Ronnie Brewer, Kyle Korver and Omer Asik.
The Bulls have also signed free-agent guard Kirk Hinrich.