A three-year veteran, Canaan spent most of the past two seasons with Philadelphia. He averaged a career-high 11 points last season while shooting 36 percent from the field and just over 36 percent from long range, hitting 176 of 485 3-pointers.
Canaan was one of 11 players in the NBA who made four or more 3s in at least 20 games.
The Bulls announced the signing, but did not reveal the terms of the contract Wednesday. Canaan's agency tweeted last week that he agreed to a two-year deal.