Neilsen, 30, joins the Rabbitohs after making his NRL debut for the Sharks in 2007 before stints with the Storm (2008-12), Warriors (2013-14) and Dragons (2015), amassing 111 NRL games.
Nielsen was part of Grand Final victories in 2009 and 2012 with the Storm, and would also go on to represent Queensland in three State of Origin clashes in 2011 and 2012, as well as the Indigenous All Stars in 2013.
Rabbitohs Head Coach Michael Maguire is pleased to be bringing Nielsen into his squad for the next two years.
“Dane brings with him big game experience which will be invaluable for the young members of our backline,” Coach Maguire said.
“He’s prepared to put in the work and fight for a spot in our backline, and competition for spots is what every Club looks for.
“We’re looking forward to having him join the squad this week.”