The 30-year-old, who departed St Johnstone at the end of last season, scored seven goals in the Scottish Premier League last season.
"There were a couple of other things in the SPL," he told the club's official website.
"When I knew I was coming away from St Johnstone, I told my representatives that I had enjoyed it in Scotland but if I was to come back, I would want to play for one of the proper clubs in the SPL.
"And I think Hibs are widely regarded as being up there as a proper football club with proper facilities and somewhere you should enjoy playing your football."
A number of English clubs had been interested in Vine.