The 34-year-old hit .266 with 12 homers and 82 RBIs last season for NL champion Philadelphia Phillies, who declined a $5.5 million option for 2010 and opted to pay a $500,000 buyout. Philadelphia then brought in Placido Polanco to replace him, agreeing to an $18 million, three-year deal.
"He's been an outstanding defensive player and a solid run producer for his entire career," Astros general manager Ed Wade said. "He played a premium position with a two-time World Series participant and was a key part of the Phillies' success. We're fortunate to have him on board."
Feliz is slated to take over from Geoff Blum, who started 94 games at third for Houston last season, and Jeff Keppinger, who started 67.
"Geoff Blum has done a terrific job for us over the past two seasons, and despite the acquisition of a regular third baseman, we believe Geoff will get his at-bats with us and be a key contributor all around the infield," Wade said. "It's been a good week for us."
Houston bolstered its bullpen this week by acquiring Matt Lindstrom in a trade with Florida and reached a preliminary agreement with Brandon Lyon on a $15 million, three-year contract.