Vargas, 30, who has spent the past two seasons with AEK Athens where he made 50 appearances, scoring 14 goals.
The attacking midfielder also boasts 122 appearances for Club Brugge and Anderlecht and 23 caps for Venezuela.
Vargas will be the club’s first marquee player since former England and Liverpool striker Emile Heskey left at the end of the 2014 season.
Jets coach Ernie Merrick expects big things from his new signing ahead of the 2017-2018 A-League season.
"To have a player of Ronald's quality and experience join the club is massive for us," said Merrick.
"He's an exciting, international player with experience in some of the finest leagues in the world and his inclusion goes a long way to completing our squad.
"Ronald will offer a great deal to our play in the front third and is the perfect fit for our team.
"I'm looking forward to seeing how he can combine with the likes of Dimi Petratos, Roy O'Donovan and Andrew Nabbout to create goal-scoring opportunities.
"We've said all along that we would wait for the right player and that has paid dividends for us, we've now got a player who I feel, can take the game by the scruff of the neck with his skill at the set piece and in general play."
Vargas will arrive in Australia on Sunday for his medical before putting pen to paper with the club.
Vargas knocked back a contract extension at the Greek power house AEK and had been training with Belgian club Royal Antwerp FC before deciding to join the Jets, the Newcastle Herald reports.
The Jets kick off their A-League campaign against arch rivals Central Coast Mariners on October 7, leaving the Vargas just under three weeks to get up to speed.
The Venezuelan's addition leaves the Jets with one visa spot left which has been earmarked for a Chinese player.
