The DR Congo-born 33-year-old was a free agent after leaving Paris Saint-Germain in December.
It took three months to complete his transfer to MLS side New York, but he has finally agreed terms subject to a visa.
"Peguy has a good pedigree as a forward who has played for many years in Europe and has now returned to full fitness," said Red Bulls sporting director Andy Roxburgh.
"He is technically very good and his movements on the pitch are impressive. We are happy to add him to our roster."
Luyindula won six caps for Les Bleus between 2004-09 and had spent five years at PSG but was ostracised under the new owners, who favoured spending big money on internationally-renowned stars over using existing players.
He rose to prominence at Strasbourg before spending two seasons at Lyon and three seasons at Marseille, although he fell out of favour at OM and was loaned out to Auxerre and Levante.
The 2007 move to PSG was initially successful but ended in acrimony when, despite the support of the French Football League, he was ordered to train with the youth team and later suspended without an official hearing.