Terms were not disclosed but according to multiple reports the deal is worth $5 million.
Albers is the latest newcomer to join the Brewers, who acquired outfielders Christian Yelich and Lorenzo Cain last week and also added veteran free-agent pitchers Jhoulys Chacin and Yovani Gallardo earlier this offseason.
A former 23rd-round pick of the Houston Astros in 2001, Albers has played for seven teams during his 12-year career. He went 7-2 with a 1.62 ERA in 63 games with the Washington Nationals last season, finishing with the third-best ERA in the National League.
Following a 2016 season in which he went 2-6 with a 6.31 ERA for the Chicago White Sox, Albers signed a minor league deal with the Nationals in January 2017. He failed to make the major league roster out of spring training but was called up a week into the season and quickly became the most dependable reliever in a bullpen that was one of the worst in baseball through the All-Star break.
Albers recorded his first career save on May 5. Until then, he had gone 460 straight appearances without one, more than any other pitcher since saves became an official statistic in 1969. He also finished the year ranked second among NL relievers in WHIP (0.85) and second in batting average against (.165).
Prior to the NL Division Series, Albers had never pitched in the playoffs. In two appearances against the Chicago Cubs, he tossed 2 1/3 scoreless innings.
In 515 career games, the 35-year old is 36-39 with a 4.13 ERA.
ESPN's Eddie Matz contributed to this report.