The terms of Hill's deal have not yet been disclosed.
Hill had previously signed a one-year, $1.542 million restricted free agent tender in March, and was set to become an unrestricted free agent in 2016.
Hill, who signed as an undrafted free agent with the Giants in 2012, was released by New York in 2014 after violating the NFL's substance-abuse policy three times. He later signed with the Ravens prior to last year's preseason, and subsequently sat out the first six games of 2014 for his violations of the league's substance-abuse policy while with the Giants.
The 25-year-old played in 10 games with eight starts for the Ravens following his suspension, posting 42 total tackles, four passes defended and an interception resulting in a touchdown.
“I wanted to be a Raven,” Hill told The Baltimore Sun. “This tells me what the organization thinks of me.”
Hill and the Ravens will open the 2015 season Sept. 16 against the Broncos.
- Kayla Lombardo