Jones, who was released by the Reds in May after making 26 appearances in five seasons as an Anfield back-up, has been on the lookout for a new club through the northern summer and turned down both Bristol City and Charlton to head to Yorkshire.
The 33-year-old will join fellow Australian, left-back James Meredith, at Valley Parade where coach Phil Parkinson will hand him the first team baton ahead of former Manchester United rookie Ben Williams.
Having been understudy to first Pepe Reina and then Simon Mignolet on Merseyside, Jones, who spent eight years at Middlesbrough before joining Liverpool, will initially join the Bantams on a one-year deal, with an option for a second season at a club with ambitions for promotion this season.
He also had the option to join an unnamed Premier League club as its No. 2 but opted instead for first team football to become the seventh Australian goalkeeper for Bradford - a list that includes ex-Socceroos No. 1's Mark Schwarzer and Robert Zabica.
Bradford has not made the best of starts, picking up just one point from its first two games to sit bottom of the table thus far.
The Bantams face Gillingham at home on Wednesday (AEST), but it's more likely Jones will not make his debut until the weekend's clash at Barnsley, where he could come up against another Australian, winger Ryan Williams.
