The move to the Bantams will see Jones reunite with City assistant Steve Parkin and defender Simon Ramsden, with whom he worked with at Spotland.
Jones passed a medical on Friday afternoon after announcing his departure from Rochdale after 11 years' service.
Jones will return to Spotland to face his former employers on Tuesday, October 2.
Meanwhile, Luke Oliver has signed a new two-year contract at Bradford.
Centre-half Oliver, 28, was last season's player of the year at the npower League Two side.
Bantams boss Phil Parkinson told the club's official website: "I'm delighted to have Olly back on board for next season. He did well for us last year and I really wanted him to stay.
"We will be looking for him to push on and improve even further next season, that is the big aim for Luke now. I don't see any reason why he can't do that because he is such a hard worker."