The French defender arrived in England in 2005, joining Wigan Athletic from Bastia, and impressed in his debut season in the Premier League enough for Tottenham Hotspur to shell out £4.5 million for his services.
The 30-year-old made 65 league appearances for Spurs during a two-year spell at White Hart Lane before departing for Sunderland last summer.
But Chimbonda was back in London after just six months in the North East - making just 13 league outings - and struggled to establish himself in Harry Redknapp's first-team upon his return.
"We've got the deal done and we've got a very experienced player who is desperate to play football again," Allardyce told the club's official website.
"He's missed his football at Spurs and wants to come here and play as often as he possibly can.
"The experience of the player, the adaptability of the player as he can play in a number of positions, and his past record at Wigan and Spurs before means that if he can get to those sorts of performances means we'll have a good player on our hands.
"We all know his favoured position is right back but we are well covered there. Centre back he can play no problem as well and he can play at left back too."
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