The 33-year-old spent five years at the Parc des Princes since signing for the club since 2007, but found himself frozen out of the team after a spat with Antoine Kombouare, and will now ply his trade in America.
“Peguy has a good pedigree as a forward who has played for many years in Europe and has now returned to full fitness,” a statement from Red Bulls Sporting Director Andy Roxburgh read.
“He is technically very good and his movements on the pitch are impressive. We are happy to add him to our roster.”
Luyindula won six caps for France between 2004 and 2009, scoring one goal. Prior to joining PSG, he had represented Levante, Olympique de Marseille and Olympique Lyonnais amongst others.