The 37-year-old former Bayern Munich and Inter Milan defender had been playing at home with Palmeiras but will join up with Brazil great Zico, who is head coach of the club in the eight-team competition.
Goa, with a number of Brazilians in the squad, finished the inaugural season of the ISL second in the table before being knocked out in the semi-finals on penalties by eventual winners Atletico de Kolkata, backed by a Spanish contingent.
Last year's headline signings, former Arsenal duo Robert Pires and Andre Santos, have been released by Goa ahead of the new season which begins in October.
"Lucio has been signed as the marquee player for FC Goa as he was strongly recommended by Zico," co-owner Shrinivas Dempo has been quoted as saying in the local media.
"We have also signed another Brazilian Andreas and are looking forward for more signings that will boost the squad."
Image: Lucio in action for Brazil during the FIFA 2010 World Cup match against Chile in Johannesburg on, June 28, 2010.
Photograph: Clive Mason/Getty Images