Valencia will make $1.2 million if he makes the Orioles and can add $3 million in performance bonuses.
Valencia, who is 33, has played eight major league seasons with Minnesota, Boston, Baltimore, Kansas City, Toronto, Oakland and Seattle.
Last season, Valencia hit .256 in 130 games with the Mariners with 15 home runs and 66 RBI.
In 2013, he hit .304 with eight home runs and 23 RBI in 52 games with the Orioles.
He is expected to compete for a reserve infielder's job and can also play right and left field.
With Valencia's addition, the Orioles have 66 players in camp.