The 26-year old has been used in an exchange deal for Drew Moor who has gone the other way and joined the Rapids.
"Ugo Ihemelu is a talented player with tremendous speed that will be a key member of our back line," FC Dallas Head Coach Schellas Hyndman said.
"In my time here, we haven't had that natural right back we have needed and we believe Ugo will provide that for us moving forward. We would also like to thank Drew Moor for his service to this team the past four years and wish him well in Colorado."
Ihemelu began his professional career in 2005 with LA Galaxy before moving to Colorado in December 2006.