The 32-year-old free agent has been on trial with the Whites for the last few weeks but now links up with the squad officially and could make his debut at Exeter on Tuesday night.
He becomes the second signing of the January transfer window after the loan arrival of Swansea City’s Declan John.
“I’ve been training with the club for a few weeks and I’m delighted to have now signed,” said Lee, who came through the ranks at Manchester United and has also played for Oldham.
“You've only got to look around the place to see that the potential to go back up is massive.
“This is a club that wants to be at a higher level. I'm coming here to help the team get promotion and go as high as we can.”
Boss Ian Evatt believes Lee’s arrival is a real statement of intent at the UniBol.
He said: “I am delighted to sign Kieran who I feel is a real coup for the club and a statement signing.
“He is a very classy and experienced footballer, and is just the right character we want at Bolton Wanderers Football Club.
“I’d like to thank the board for their support in getting this deal completed”
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