Bailey - who scored one try in six appearances for Castleford Tigers last season - was released by Hull Kingston Rovers in March due to personal reasons, having played just one match for the club.
Speaking to the club's official website, head coach Tony Smith said: "It is no secret that Ryan has had a chequered past. However he is fully aware of the special conditions set out within his contract and the standards expected of all Warrington Wolves players.
"During my time coaching Ryan at Leeds we had a fantastic relationship and I never experienced any issues. He is fully aware that some of his past behaviours were unacceptable.
"However at times we need to give people a second chance. I have every faith that we can develop his game and see the solid and hard-working player I know he can be."
Bailey could make his competitive debut for the Wolves against his former club in their opening Super League fixture on Thursday, February 4 2016.