The winger joins Adelaide after spending four seasons with Melbourne City where he made 75 appearances and scored 13 goals.
The 25-year-old said the style of play that the club plays was a factor in his decision.
“I was always keen on coming to Adelaide and obviously the team performed quite well last season, in winning the FFA cup,” said Dugandzic.
“I love the brand of football they play, the way the boys looked and the way it looked like on the outside.
“It seems like a tight unit and the club has a great culture, and this was one of the main reasons in coming to the club.
“I am really look forward to playing under Guillermo.
“As you can see from his playing resume, Guillermo was a fantastic player and every sort of footballer wants a coach like that, that they can learn from.
“I am excited to hear what he has to say and what he’s got planned for me as well. And the fact that a player of such quality is coaching in Australia is fantastic to see."
Coach Guillermo Amor said the qualities Dugandzic brings to the club are exactly what he was looking for to help build a better team.
“We are very happy with this new addition to our squad,” said Amor.
"I'm convinced that Mate will help us build a better team.
"I think he will contribute a lot offensively, but he will also sacrifice and help defensively.”
Dugandzic will arrive in Adelaide on Monday, where he will be officially unveiled as an Adelaide United player on the same day, before liking up with his new mates as Adelaide embarks on its annual Northern Territory tour.
