Veratau, who plays his club rugby for Eastern Suburbs in NSW, impressed Queensland selectors by scoring four tries in a recent trial match against Toshiba at Ballymore.
And Reds coach Jeff Miller admitted the 21-year-old's ability to play in three positions in the backline - on the wing, at centre or at full-back - had convinced him to give Veratau a future in the Sunshine State.
"Henari started four games for the Brumbies in this year's Super 12 and certainly didn't look out of his depth," Miller said in a statement.
"He's quick, strong and can score tries and I think he will bring a lot to our squad."
Veratau, who scored two tries in six Super 12 appearances for the Brumbies last term, spent two seasons in Canberra after a rugby league stint with the Sydney Roosters, where he made two appearances.
"I am thrilled to be given the chance to join the Reds and I can't wait to join up with my new team-mates," he said.
"I know a lot of them from my time with the Australia Under-21s and I am looking forward to touring Argentina with the rest of the squad in October when I'm sure I will get to know everyone really well.
"I enjoyed my Super 12 experience with the Brumbies and I know I can play at that level.
"With so many good players around, I realise it will be hard but I'm determined to try to force my way into the Reds starting line-up for Super 14.
"Everyone has made me feel really welcome and with my family all now living on the Gold Coast, moving to Queensland feels the right thing to do."
Veratau's arrival follows the acquisition of prop forward Dan McKellar, from Wicklow in Ireland, and brings the number of new Reds' signings to 10.