Toure had been without a club since leaving Greek side Olympiacos late last year after making just two appearances in the Greek Super League.
Qingdao Huanghai are currently top of the Chinese second division league after winning nine of their first 15 games of the season, and the 36-year-old former Ivorian international will be hoping to help them gain promotion to the Chinese Super League for the first time in their history.
"Since the start of my football career, I have always loved challenges and now I have decided to take this new challenge and make history once again with Qingdao Huanghai Football Club," Toure said in a statement.
"This is a very exciting young club with a lot of potential and we share the same philosophy – that is to play beautiful football. It will be my great honour to grow and succeed with this club.
"I believe my experiences in football will offer something new to this growing club and together we can make great history. I can't wait to let my football do the magic once again, let's enjoy football together!"
Toure’s agent, Dimitri Seluk, revealed earlier in May that the former Manchester City midfielder had hang up his boots and was moving into a career as a coach.
The former AS Monaco and Barcelona midfielder however refuted the claims of his agent just two days later, revealing that although he was eyeing a career in the dugouts, he still had enough strength to compete for a few more years.
Toure, who is a four-time African footballer of the year, spent eight seasons with Manchester City where he won three Premier League titles, one FA Cup and two League Cups.
He was a member of the Ivory Coast national team that beat Ghana on penalties to win the 2015 African Cup of Nations.
