The second year of the deal is a team option.
Sam, 25, has been a free agent since being released from the Dallas Cowboys practice squad in October.
Alouettes general manager Jim Popp expressed interest in Sam, saying last month the team had a “50-50" chance of signing him, as the team held the exclusive CFL rights to Sam.
“With the signing of Michael Sam, we have become a better organization today,” Popp said. “Not only have we added an outstanding football player, we have added even a better person that brings dignity, character, and heart to our team.”
“I cannot wait to put on the pads, get back on the field and work hard each and every day with my teammates to bring a Grey Cup to the great fans here in Montreal," Sam said in a statement.
Sam became the first openly gay player selected in the NFL draft when the St. Louis Rams chose him in the seventh round in 2014. The team cut Sam at the end of training camp after he made three sacks during the preseason.
“I don’t believe that being gay has kept me off an NFL roster, but I will challenge anyone who says I don’t have the talent to make it in the league,” Sam wrote to on the MMQB in February.
During this offseason, Sam competed on ABC’s “Dancing with the Stars" and attended the NFL’s combine in Arizona with 100 other veterans looking to land on an NFL roster. He ran a reported 4.99 40-yard dash.
- Scooby Axson