Ponting, who scored his third Sheffield Shield century of the summer this week for Tasmania and heads the domestic competition run-making list, was a surprise announcement for the CPL on Friday.
He is the first star international signing for the new league, in a significant boost for the fledgling tournament.
Ponting's commitment to the inaugural rich West Indies Twenty20 league is a major coup in organisers' attempts for the new tournament to match the now-established Indian Premier League and Australia's annual Big Bash.
Ponting, 37, was also smash-hit in Australia's BBL with his hometown Hobart Hurricanes after he shocked the cricket world with his retirement announcement in Perth in late November, just before the Third Test against Sri Lanka.
“The West Indies has always been one of my favourite cricket destinations,” Ponting said in a statement.
“The mix of entertainment and cricket is the perfect recipe for West Indian cricket fans as well as the rest of the world.”
Six West Indies stars, Darren Sammy, Dwayne Bravo, Chris Gayle, Sunil Narine, Kieron Pollard and Marlon Samuels have already committed to the CPL.