The Red Wings originally selected Drake in the sixth round of the 1989 NHL Entry Draft. He played two seasons with Detroit before being traded to the Winnipeg Jets in 1994.
Last month the 38-year-old was placed on waivers by the St. Louis Blues, his team for the last six seasons. Drake signed a two-year, US$2.2-million deal before last season and was due to make $1 million next year.
Drake has 174 goals and 297 assists in 944 career games. He ended last season on injured reserve because of a wrist injury.
"He's a very physical player who will add grit to our lineup and make our team even more difficult to play against," Red Wings general manager Ken Holland said in a statement. "He's a veteran player, and you can never have enough experience and leadership on a team."
Drake also played four seasons for the Phoenix Coyotes.