Former England batsman Pietersen, 36, last played for Surrey -- his third English county -- in 2015.
"I'm absolutely over the moon to be joining Surrey again," said Pietersen, who had been due to play in the CPL for St Lucia, on Tuesday, in a club statement.
"I've missed playing here at home and it's going to be a special feeling walking out at The Oval again.
"I've had some great times at this club and ground over the years; it's a special place with top people, and I'm looking forward to once again being part of it," explained Pietersen, who recently pulled out of playing for St Lucia in this year's CPL.
In a separate video, filmed at Wentworth Golf Club, Pietersen -- who also withdrew from this year's lucrative Indian Premier League because he felt he needed a break after a busy, globe-trotting schedule -- said: "One of the great things is I'll be at home all summer. I've had an incredibly bad winter for travel and one of the reasons for doing it was to stay at home all summer.
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For all the reported discontent he caused within the England set-up, Pietersen has always been well-regarded at The Oval and Surrey director of cricket Alec Stewart said: "Re-signing KP is a massive boost to the club and the NatWest T20 Blast competition.
"To have a player of his undoubted calibre available to us will add strength and experience to our squad and I'm sure all our fans will enjoy seeing him back playing in England again.
Pietersen is now due to make his first appearance of the 2017 English season against Essex on July 19 and is due to be available for the rest of the revamped tournament.
One of the most talented batsmen of his generation, South Africa-born Pietersen scored over 8,000 runs in 104 Tests for England at an average of nearly 48 including 23 hundreds.
He also helped England win the 2010 World Twenty20 in the Caribbean -- still their only major international limited overs trophy.
In 2015, ECB chairman Colin Graves at a possible return to England duty if Pietersen scored sufficient runs in county cricket.
But almost as soon as he had made a triple century for Surrey against Leicestershire, ECB cricket director Andrew Strauss -- who had both captained and played under Pietersen for England -- made it clear an international recall was out of the question.
Pietersen was most recently involved in the Pakistan Super League, largely staged in the United Arab Emirates, but withdrew from the Quetta Gladiators side that lost last weekend's final because of security fears concerning the match being staged in Lahore.
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