The 32-year old striker has signed a two-year deal with an additional two years as an option in what is a major boost for the club.
Victory football operations manager Gary Cole was delighted to welcome the dual Victory Medallist and two-time Championship winner back to the club.
“Danny is a fantastic acquisition for the club and we’re very excited to have him back.” Cole said.
“We’ve maintained contact with him since he left last season and when things didn’t quite go to plan in the US, we began the process of bringing him home to Melbourne Victory.
“Everyone knows what Danny is capable of. He and Archie Thompson formed one of the great partnerships over the first four seasons of the A-League and we’re looking forward to them re-uniting. Throw Danny into the mix alongside Archie, Carlos Hernandez, Ricardinho and Robbie Kruse and you’ve got a fairly potent attack.”