The two-year deal will see Levi remain at Huddersfield until at least the end of the 2023 season.
Levi has played 112 games since his 2015 NRL debut, spending five years at the Knights, before a year in Manly and Brisbane each.
Touted as one of the game's best young players, he made his NRL debut at the age of 19, having captained the Knights' under-20s team at 18, and being named to the NYC Team of the Year in the same season alongside the likes of Valentine Holmes, Drew Hutchison, Te Maire Martin and Nelson Asofa-Solomona, who at that point was listed as a second-rower.
The Broncos were never rumoured to be interested in re-signing Levi, despite some strong late-season performances as he replaced the injured Jake Turpin.
Turpin will continue as the first-choice hooker in 2022, while Kobe Hetherington is also waiting in the wings for an opportunity, having spent time at lock during 2021.
Levi is unlikely to be a first-choice starting option at Huddersfield, stuck behind club vice-captain Adam O'Brien. He joins fellow ex-NRL players Ricky Leutele, Aidan Sezer, Kenny Edwards and Jack Cogger at the club.
Despite likely not being a starter, Huddersfield coach Ian Watson said he was excited by what Levi could bring to the team.
"Danny is electric in and around the ruck, he's really quick and he's got great skill," Watson said.
"His distribution is first class and he brings people onto the ball. He brings the forwards onto the ball to generate the quicker ruck speed.
"His running game will make us dangerous in and around the spine."
Levi said he was looking forward to the opportunity.
"I've heard a fair bit about Super League, it's a tough competition and I can't wait to get over and see what it's like," Levi said.
"I like to run, I like to get out of hooker and bring energy to the team. That's what I base my game off - being a high energy player, try to run as much as possible."
Levi will link up with Huddersfield ahead of the 2022 pre-season.