The 28-year-old New Zealand-born back switched codes in 2014 after a successful rugby league career, including a National Rugby League (NRL) title with South Sydney Rabbitohs.
"Everything's in place for Worcester to become a successful club, competing in the top tier," said Te'o.
"The investment in facilities and infrastructure is impressive and it's clearly a club which is on the up."
Te'o scored 43 tries in 151 appearances and also played for Samoa at the 2008 World Cup before switching codes.
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He has five tries from 23 games for Leinster in the Pro12 and European Champions Cup.
Warriors director of rugby Dean Ryan has no doubt Te'o can make an impact at Sixways.
"We've tracked Ben for a long time - probably over a year now - and we're delighted," Ryan told BBC Hereford and Worcester.
"He gets what we're trying to do here and to get a player of his potential is something we've found difficult.
"He's been playing at the highest level and there's so much more to come from him, I'm over the moon to convince him that coming here is the right choice."
Warriors, promoted from the Championship last season, are currently 10th in the Premiership table, with two wins and four defeats from their six games so far.
Worcester Warriors have signed Leinster centre Ben Te'o for the 2016-17 season.