The deal will see Lee stay at the club in 2023 and 2024.
Lee, who is currently at the Newcastle Knights, had to spend the off-season fighting for his place at the Knights after spending all of 2021 on the sidelines with an injury.
It left Lee on a train and trial deal over the summer, before eventually being signed on a one-year deal.
He spent the first five weeks in reserve grade, but has played over the last five weeks as injury has crippled the Knights, with all of Dane Gagai, Hymel Hunt and Dominic Young among others spending time on the sidelines.
He scored his first try back in the top grade on Friday in a win over the Canterbury Bulldogs, taking his career tally to 60, with the former Raider and Shark also having one game for Queensland under his belt in 2020. That game came under the coaching of inaugural Dolphins' coach Wayne Bennett.
The signing of Lee for the Dolphins adds to a team who have struggled for depth, particularly in the backline, but have made it a focus to sign Queensland-born or eligible players in recent times, following the recent acquisitions of Tom Gilbert, JJ Collins, Ryan Jackson (development) and Connelly Lemuelu.
Club CEO Terry Reader said it was another strong signing for the Dolphins.
“We have seen Edrick’s class at the highest level and are excited he will be part of the Dolphins’ first ever team,” Reader said.
“We have also admired the fight Edrick has shown to make his way back from a series of foot injuries to re-establish himself in the NRL.
“It is this type of attitude that gives us confidence he will be a major contributor for the Dolphins in 2023 and beyond.
Lee will link up with his new teammates in November.