The deal is worth a max of $4.3 million and includes a $700,000 signing bonus, Woodson's agent, Carl Posten, tells ESPN's Josina Anderson.
Woodson, 36, spent the first eight seasons of his career with the Raiders, accumulating 17 interceptions and 14 forced fumbles.
He left after the 2005 season for the Packers in free agency and was one of the more dominant defensive backs in the league during his time there, intercepting 38 passes in just seven seasons.
Few people have a résumé like Woodson. In addition to his impressive statistical accumulation with Green Bay and Oakland, he's also got a national championship at the college level, a Heisman Trophy, an NFL Defensive Rookie of the Year Award, an NFL Defensive Player of the Year Award, and a Super Bowl victory. That's an MVP award and a jacket in Canton short of the football grand slam, and the latter is coming at some point.
But Woodson's trip back to Oakland is a little odd. It's either about nostalgia or it's about money (or maybe both). The Raiders shouldn't be very good in 2013, though they should offer the eight-time Pro Bowler a chance to start right away, with a defense that's been completely gutted.
Woodson clearly lost a step based on his play in Green Bay in 2013, but he can still add plenty to a team that can use a playmaker who can line up all over the place.