The 31-year old South Korean defender was released by the Sky Blues at the end of the 2010/11 campaign and has now signed a one-year deal with the Jets who have been busy strengthening their squad for next term.
Byun joined Sydney from K-League club Jeju United in 2009 and made close to 60 appearances for the club. His signing has been welcomed by Jets head coach Branko Culina.
"We are please that Sung-Hwan has agreed to join us for next season," Culina said.
"We believe that he has a lot of potential will be a handy player for us."