Rakitic who arrives after cancelling his agreement with Saudi side Al Shabab, will play for Hajduk for the next season.
"One of the best players in the history of Croatian football minutes before midnight has signed an agreement with Hajduk until the end of the season with an option for further extension of one season," Hajduk Split announced on its website.
Rakitic, who by Hajduk is presented as the most decorated player in the Croatian league, will be officially presented on Sunday night at a press conference in Split.
The veteran midfielder started his career in Basel, Switzerland, later playing for Germany’s Schalke 04 and Sevilla and Barcelona in Spain.
He won the UEFA Champions League with Barcelona and the Europa League twice with Sevilla.
He made 106 appearances for Croatia playing a key role in winning the silver medal at the 2018 World Cup in Russia.