Hodgman will be eligible to play for Australia in November next year through his father.
Hodgman said, "I'm looking forward to moving to Australia with my family and starting new with the Reds.
"Change is good but also comes with its challenges and that excites me. A new facility, new coach and a playing group that has been together for a while allows me to bring my experience and just be me."
The four-Test All Black will be joined by former Hurricanes prop Jeff Toomaga-Allen, a one-Test All Black who has recently qualified to play Test rugby for Samoa.
Toomaga-Allen, a Hurricanes centurion, played for Wasps and Ulster after leaving the Hurricanes.
"I'm excited to be coming back to Super Rugby after being away for a few years, and getting to know everyone at the Reds."
He said being closer to family was also a reason for joining the Reds.
"I'm keen to get amongst the community in Queensland and [am] looking to connecting with all the supporters around the state."
New coach Les Kiss has been on a recruitment drive since replacing Brad Thorn as coach and was pleased to acquire the All Blacks props.
"Both bring experience at the highest level and will strengthen our tight five on and off the field.
"There's been a strong culture of care and connection built at Ballymore over the past few years. After talking to Alex and Jeff, they have a team-first mentality and will only bolster these values over the next two seasons.
"In addition, having a player of Alex's ability qualifying for Wallaby selection in 2024 is great for Australian rugby."