Forsett, a 28-year-old who has played on four teams in six NFL seasons, provides much-needed depth at the running back position.
"When I hit free agency, this was one of the first teams that contacted us," Forsett said. "Of course, the history with coach Kubiak definitely drew me here. I'm excited about the system. I've been in the West Coast offense, zone running scheme for most of my career. So, it just fits what I do, where I like to be and where I'm familiar. So, it was a no-brainer."
Starter Ray Rice is dealing with legal issues and likely an NFL suspension after an altercation with his now-wife earlier this offseason. His primary backup the past two seasons, Bernard Pierce, had shoulder surgery, though he said last week that he should be ready for the start of training camp in July.
The Ravens also could address the position in next month's draft.
Forsett played nine games for the Jacksonsville Jaguars last season, getting just six carries for 31 yards and catching 15 passes for 82 yards. He was shut down in December with a broken foot.
In 2012 with the Texans, he carried the ball 63 times for 374 yards and a touchdown.
Forsett, who is 5-foot-8 and 194 pounds, was drafted in the seventh round out of the University of California in 2008 by the Seattle Seahawks. He spent part of four seasons with the Seahawks and had his best year in 2009, rushing for 619 yards and four scores.
In six NFL seasons, Forsett has rushed for 1,692 yards on 347 carries, and scored eight touchdowns. He's also caught 115 passes for 850 yards and a score.
His signing comes a day after the Ravens announced that they agreed to terms with veteran tight end Owen Daniels, another player with ties to Kubiak and the Texans.
Forsett had injuries last season.
"Definitely, I had a lot of injuries and a lot of adversity last year being in Jacksonville," Forsett said. "It made me stronger, definitely a better man, and I'm excited to release everyting that I have in me out on this field."