Former Ospreys ace Jones will move to Worcester for next season and will be reunited with Director of Rugby Mike Ruddock who capped him for Wales on the tour of North America in 2005.
Jones enjoyed an impressive career with Ospreys at the Liberty Stadium, playing 47 times after making his debut in 2004, before suffering a knee ligament injury in his left leg in the Cwmtawe Sevens in August 2006.
Last season Jones had a brief loan spell at Moseley before moving to London Welsh in National Division One and making a massive impact at Old Deer Park towards the end of the campaign.
Director of Rugby Ruddock said he was delighted to once again get the chance to work with Jones.
"Matthew joins the Warriors after a spell at London Welsh where he helped to improve the London-based club's form significantly during the second half of last season," he said.
"Matthew is a quality player who caught my eye when I was national coach at Wales. Matthew was then playing for the Ospreys and the Wales Under-21s team, figuring in the Grand Slam winning side.
"Because of his great ability and good form at that time I took Matthew on tour with Wales to America and Canada and capped him against Canada where he displayed all the excellent skills that I believe are required for a top level outside half.
"Matthew fell off the radar afterward after suffering a knee injury and during a year out and the game with ligament damage James Hook emerged as the replacement for him and certainly took his opportunity as we have all witnessed.
"Matthew has worked his way back from this injury and I have no doubt that he can again perform to the same level that made me pick him for the full Wales team.
"I believe he is a the sort of ten that can prosper under the proposed new ELVs and his decision to join the club will further strengthen an area of quality where we already have the option of selecting Loki Crichton and Joe Carlisle."
New signing Jones said: "It's a great opportunity at Warriors and one I intend to take with both hands. The chance to play in the Guinness Premiership is a massive one for me.
"I have played in the Magners League before but I can't wait to play in the English top-flight, to play with the best players in the world and show what I am about. I can't wait for it to start."