Segui, who played his first game in the majors with Baltimore in 1990, signed a $28-million, four-year contract with the Orioles on Thursday.
The announcement came two days after the sides agreed to terms and just over 24 hours after the free agent first baseman took a physical administered by the team.
Segui, 34, hit .334 in 150 games with Texas and Cleveland last season.
The switch-hitter had 192 hits, 42 doubles, 19 homers and 103 RBIs.
Segui spent nine years in the Orioles' organization before being traded to the New York Mets prior to the 1994 season.
That was the first in a series of trades that would carry Segui to seven different teams over seven years, including a brief stints with the Montreal Expos and Toronto Blue Jays.
He also played with Seattle before sharing time with the Rangers and Indians in 2000.
Now, a decade later, he's back where he launched his career.
"It's nice to come back and play with the Orioles again. Of course, I made a few stops along the way," Segui said. "I always enjoyed playing in Baltimore and I've always expressed a desire to finish my career here.
"It's kind of like going home. I have some friends on the team and it will be great to play with Cal (Ripken Jr.) again.
"It's definitely an honour."
Segui can also play the outfield and was used in 68 games as a designated hitter, batting an AL-best .331 with nine homers and 39 RBIs.
"David is a proven run-producer and a quality hitter from both sides of the plate," said Syd Thrift, the Orioles vice-president of baseball operations.
"We can play him at any one of four positions."
Segui did not commit an error in 617 chances at first base last season.
"I think we're going to have a very solid defence, and that makes a big difference for the pitching staff," said Segui, who chose the Orioles over Detroit and Cleveland.
"There were other offers that were equal or a little bit better, but there weren't cities that I wanted to play in for four years," Segui said. "With Cleveland, they made an offer and then pulled it away.
"I don't like those kind of games."
Segui will earn $7 million a year through 2004, with $1 million deferred without interest to be paid from 2005-08.
Incentives in the deal include $200,000 for MVP, $75,000 if he finishes second through fifth in the voting and $50,000 if he is 6th-10th in the balloting.
Segui would earn $75,000 if he makes the all-star team, either as a starter or a reserve.
In other moves Thursday, the Orioles designated third baseman Ryan Minor for assignment and did not offer a 2001 contract to pitcher Calvin Maduro, making him a free agent.
Minor, who hit .131 last year, is best known as the player who replaced Ripken at third base on Sept. 20, 1998, when Ripken ended his record consecutive games streak at 2,632.
The Orioles have 10 days to trade Minor, send him outright to the minors or release him.
