The team confirmed the agreement on Tuesday and says he'll officially sign in the next couple of days.
The 33-year-old, who spent the past seven years with the Arizona Cardinals, made 17 of 20 field goal attempts last season.
He'll compete with Kris Brown, the only kicker in team history, who is coming off his worst season in Houston. He missed 11 field goals last season, including two in consecutive games against AFC South opponents that would have sent those games into overtime.
Rackers, who played for Cincinnati his first three seasons, has made more than 78 percent of his field goals in a 10-year career.
Copyright 2010 by The Associated Press