The 34-year-old will join the county in June and train ahead of South Africa's tour of Sri Lanka, which starts in July. The plan is that he will return as the county's overseas player for the final weeks of the season.
During the training stint in June, Steyn will fill in for compatriot Hashim Amla, who will be with Hampshire for the first three months of the season, for a one-day match and a four-day first-class game.
Steyn has 419 Test wickets, just two behind Shaun Pollock’s South African record.
"Dale is one of the best bowlers in the world and is extremely motivated to get going after a frustrating period on the sidelines," said Hampshire director of cricket Giles White.
"It seems a great fit for both parties -- we hope that we can help him get back to his best and we look forward to welcoming him to Hampshire."
First Published: April 6, 2018, 3:55 PM IST