Snead, who played in five games this season as a true freshman for UT, picked the Rebels over TCU and Houston.
"It's a great fit for me," Snead said. "I really like the coaches and the offense. Coming out of high school I really looked hard at SEC schools."
Snead said he'll report to Oxford around Jan. 15.
"I don't regret any of my time at Texas," Snead said. "I hope nothing but the best for Colt McCoy and the Longhorns. But I'm ready to follow my own dreams now."
The 6-foot-3, 215-pound Texan will have three seasons of eligibility beginning in the 2008 season. Snead had been looking for a program that had a rising senior quarterback and would be looking to find a replacement for the season Snead will become eligible. He visited the Rebels' campus in Oxford over the weekend.
ESPN.com ranked Snead as the nation's No. 3 QB prospect (13th overall) in the Class of 2006. He competed for the Longhorns' QB vacancy following the departure of Vince Young, but lost out to redshirt freshman McCoy.
Bruce Feldman writes for ESPN The Magazine. Joe Schad is a college football reporter for ESPN.