The winger accepted an invitation to the team's training camp and joined the Oilers on Sunday.
Carter split last season with the Columbus Blue Jackets and Carolina Hurricanes. He had 28 points (11-17) in 64 games.
The Toronto native played three seasons with Edmonton and had 157 points (69-88) in 211 games between 2000 and 2003.
Carter has played for eight teams during his career. He has 421 points (202-219) in 674 games.