Financial terms were not disclosed, but ESPN.com's Adam Caplan reports that the deal is worth $2.75 million.
The Seattle Seahawks also showed interest in Guion, who visited the defending NFC champion last week.
Guion, 27, had 32 total tackles, 3.5 sacks and one forced fumble in his first season with Green Bay last year after spending the first five years of his career with Minnesota Vikings.
Packers head coach Mike McCarthy recently said that he wanted Guion back with the team despite a February arrest for felony marijuana possession and gun possession. Those charges were dropped after Guion entered a plea deal and paid a $5,000 fine.
Guion has 8.5 sacks and three forced fumbles in his career.
- Scooby Axson