The 43 year-old returns to his former club for their season in Serie B after relegation last term.
“We are thrilled to welcome Gigi Buffon home," said Kyle Krause, the president of Parma. "We are going to bring this legendary club back to its rightful place. Buffon's return is another validation of that ambition. It's a really special moment for all of us."
"I understood from looking him in the eyes that it was an emotional one for him. He is committed, he wants to work, he knows this place – Parma is his home. We are proud that we can count on him. Seeing him come back to the club where his incredible career began will be a beautiful thing, and we know there are more pages still to write in his story."