SBS understands the ex-Central Coast Mariners centre-back had been considering offers from other A-League and overseas clubs since being released at the end of last season and decided to be reunited with his former coach Graham Arnold at Sydney.
The 24 year-old will likely replace departed Serbian defender Nikola Petkovic, who left for Belgian club Westerlo last month.
Anderson was a part of the Central Coast squad that won the 2013 A-League championship under the stewardship of Arnold.
He joins other ex-Mariners, John Crawley (goalkeeper coach) and Andrew Clark (strength and conditioning coach) at the Sky Blues this season.