Herrera will also have an option on the 2025 season.
Herrera will join the club later in the summer when he finishes the season on his current team Atletico de Madrid of the Spanish league, La Liga.
The 31-year-old midfielder has more UEFA Champions League appearances than any other Mexican player with 55. Herrera also helped Atletico Madrid to a La Liga title in the 2020-21 season.
He also has 93 caps for the Mexican National Team and has been captain of the team for the last decade.
“This is a momentous day for our club, the city and our league to add a player of Hector’s quality and pedigree. He embodies the new ambition that Ted has brought to our club,” said Dynamo general manager Pat Onstad. “And while Hector was attracted to our sporting project, he was even more motivated to be a champion for this city. He chose Houston and we couldn’t be happier to have him.”
Herrera recently took Mexico to the finals of the 2021 CONCACAF Nations League and 2021 CONCACAF Gold Cup, where he won the Golden Ball as the tournament’s best player. His accolades at the regional level include CONCACAF Best XI honors in 2017 and 2018, as well as the IFFHS CONCACAF Best XI in 2020.
“The addition of a player like Hector validates the new direction and ambitions of our club. He is the type of player who will raise our standards across the board,” said Dynamo head coach Paulo Nagamura. “Credit goes to our ownership group, Pat and Asher for all the work they’ve done in such a short amount of time.”