The 39-year-old departed Leicester City for the Italian side in 2025 after 13 years at the King Power Stadium, where he became the club's record Premier League scorer with 145 goals and won the title in 2016.
He left Cremonese over the summer and now returns to English football with Burnley, who sit bottom of the Championship without a win in five matches under new head coach Nicky Hayen following their relegation from the Premier League last season.
"This club has a proper footballing history and passionate fans who deserve a team that represents them and their town," Vardy told the club website. "I can't wait to get going on the pitch and help the team move in the right direction."
Vardy signed for Leicester from non-league Fleetwood Town in 2012 and went on to make 500 appearances in all competitions for the club, scoring 200 goals and helping deliver one of English football's most celebrated title triumphs. He also earned 26 caps for England, scoring seven goals during his international career.
Burnley's struggles continued at the weekend with a 2-1 home defeat to Bristol City, having conceded twice in the final ten minutes to surrender a result that had appeared to be heading their way. Hayen said he expects Vardy's experience to have an immediate impact on a squad short on leadership and know-how at this level.
"His experience and leadership will be invaluable to our squad, and we believe he can make a significant impact on our campaign," the Burnley boss said. "Jamie has a proven track record, and we are looking forward to seeing him in a Claret shirt."
The move represents a significant gamble for both parties: Burnley gain a proven goalscorer with a track record of thriving against expectations, while Vardy takes on the challenge of reviving a struggling promotion-winning side at a stage of his career when many of his contemporaries have already retired.
Whether he can rediscover the sharpness that once terrorised Premier League defences remains to be seen, but his arrival alone is likely to lift spirits at Turf Moor.