Ehrhoff reached the agreement with Krefeld on Tuesday, the team announced on its website. The deal was reached after the German Ice Hockey League team agreed to pay about $26,000 a month to insure the player in the event of injury.
Ehrhoff spent four seasons with Krefeld before breaking into the NHL in 2003-04 with San Jose.
The Sabres acquired Ehrhoff in a trade with the Islanders in June 2011, and then signed him to a 10-year, $40 million contract before the start of free agency.
Ehrhoff traveled home shortly after the lockout began last weekend. He's scheduled to play his first game with Krefeld on Friday.