The Juventus legend will continue his career in the A-League after agreeing to a move to the Sky Blues and will ink a contract with his new club this weekend
The 37-year-old attacker left Juventus this summer after it decided not to offer him a new contract, and he will now continue his career in the A-League.
"This is huge for Sydney FC, huge for the A-League and huge for Australian football," chairman Scott Barlow said on the club's official website.
"We feel honoured that Alessandro has decided to play for Sydney FC and we share his excitement that a move to Sydney FC will create a lasting legacy for football in this country.
"I want to thank Tony Pignata and Lou Sticca for the outstanding work over the last few days in progressing discussions with Alessandro and look forward to Tony finalising the contract in Italy over the coming days."
Nevertheless, Del Piero's brother and agent Stefano has stressed that the deal is not official just yet.
"He still has not signed anything," commented Stefano Del Piero on the matter.
Del Piero, who made over 500 league appearances for Juventus between 1993 and 2012, had also been linked with clubs from the USA and China in the past few months.