The two sides reached agreement on a one-year deal, a source told ESPN NFL Insider Adam Schefter.
Rice took to Twitter Wednesday night to confirm his return to Seattle:
Seahawks quarterback Russell Wilson also took to Twitter Wednesday night to express his excitement:
YESSSSSSSSSSS!!!!!!! @sidneyrice- Russell Wilson (@DangeRussWilson) April 17, 2014
Rice, 27, spent Wednesday in New Jersey visiting with the New York Jets, but decided to return to the team he played for the last three seasons.
Rice caught 15 passes for 231 yards and three touchdowns in eight games last season, which ended after Rice tore his ACL against the St. Louis Rams in Week 8.
The Seahawks signed Rice to a five-year, $41 million deal before the 2011 season, but released him on Feb. 28 after three up-and-down seasons.
Rice's best season in Seattle came in 2012, when he caught 50 passes for 748 yards and seven touchdowns.