The deal includes a spring training invite, and Chavez is expected to compete for a spot in the Angels' bullpen.
Chavez, 37, spent the past two campaigns with the Texas Rangers. He posted a 6.88 ERA and 7.66 FIP in 2020, but has had flashes of success throughout his 13-year career.
This will be Chavez's second stint with the Angels. He pitched for Los Angeles in 2017, posting a 7-11 record with a 5.35 ERA while starting 21 of his 38 appearances.
The native of San Gabriel, California, has played for nine different organizations throughout his career.