Kandji will boost a shallow Dynamo forward line looking to recover from the loss of Brian Ching to the Montreal Impact in the Expansion Draft.
The 26-year-old is best known for assisting the game-winning goal in the 2010 MLS Cup final in a move that gave Colorado the trophy as well as tore Kandji's ACL and ruled him out for the majority of the 2011 season.
The rangy forward returned to play nine regular season games and three playoff matches last season.
"I've always liked Macoumba as a player," said Dynamo head coach Dominic Kinnear. "His athleticism and good play to goal will be a good fit for our team."
Kandji has spent the majority of his time in MLS with the New York Red Bulls, joining the club in 2008 from the USL Atlanta Silverbacks.
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