Green, who is on international duty at Euro 2012, was a free agent after his contract with promoted West Ham United came to an end. His deal with QPR will begin on July 1.
"Rob is obviously someone with vast experience at international and Premier League level and his pedigree speaks for itself," manager Mark Hughes told the club website.
"He's got all the characteristics of a top keeper and he'll be a huge addition for us who will stimulate the goalkeeping group."
The 32-year-old Green spent six years at West Ham after joining from Norwich City in 2006.
He was England's first choice heading into the World Cup in South Africa in 2010 but was dropped after the opening game when he allowed a soft effort from United States forward Clint Dempsey to slip from his grasp into the net.
"I'm excited about the challenge ahead and hugely encouraged by the direction in which the owners and Mark Hughes are looking to take the club," said Green.
"It's an exciting period for everybody connected to QPR and I can't wait to get started."
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