Gough's signing was announced at a media conference in Chelmsford on Monday.
The 33-year-old right-hander, who retired from Test cricket last August following long-term knee problems, has signed up for the 2004 season. The move means he will again play alongside his former test captain Nasser Hussain.
Regarded as the heart of the England team for almost a decade, Gough played his last Test against South Africa at Lord's in July last year. He still harbours ambitions to play at one-day international level.
In 58 Tests Gough took 229 wickets, the eighth highest tally by an England player. He has also taken 188 wickets in 121 one-day internationals.
Warwickshire, Middlesex and Gloucestershire were also reportedly interested in signing Gough after he became increasingly unsettled at his home county.