The 31-year-old started his career with the Sharks in 2002 before moving to the Top 14 side in 2008.
Lund's short-lived international career saw him win 10 caps for England between 2006 and 2007.
"I am delighted Magnus has signed. I gave him his debut back in 2002 and have followed his career down the years," Sale director of rugby Steve Diamond told the club's official website.
"He is a great signing for us and will fit in perfectly with our plans."
Sale start the new Aviva Premiership season at home to Bath on September 6.