The Houston Dynamo signed former LA Galaxy defender Leonardo on Wednesday after selecting him in the MLS Re-Entry Draft last month.
Leonardo, 28, has played for the Galaxy since 2010 after initially moving to MLS on loan from Brazilian club Sao Paolo.
He helped LA win three MLS Cups and was named the team's top defender in 2015. But he made only four appearances last season while hampered by injuries and the Galaxy declined to pick up his option for 2017.
That made him eligible for the Re-Entry Draft and by selecting him Dynamo earned the right to negotiate a new deal with the player. Leonardo made $160,000 in 2016, but the team did not release details of the new contract.
"[Leonardo] is an experienced defender who is excellent in one-v-one situations, he's strong in the air, and he can play at either left center-back or right center-back," Dynamo coach Wilmer Cabrera said in a statement.
"He's been playing for seven years with a consistent playoff contender, winning three MLS Cups, so we're bringing in someone who has experience, leadership, talent and is still at a very good age."