Hore was not offered a new contract by the Hurricanes, amidst rumours of a fall-out with new coach Mark Hammett.
He has been the Hurricanes' captain since 2010 and represented the Wellington-based franchise in 106 matches since 2002.
Hore is the fourth All Black to leave the Hurricanes for another New Zealand franchise since the end of this year's Super Rugby campaign.
Ma'a Nonu and Piri Weepu have joined the Blues and Aaron Cruden signed with the Chiefs.
Other senior players like Neemia Tialata and Rodney So'oialo have also left the New Zealand capital, and will further their careers overseas.
Highlanders coach Jamie Joseph said although it took a while for them to secure Hore's signature, the deal suited both parties.
"We had to make sure everyone is making the decision for the right reasons," he told the Otago Daily Times.
"From his perspective he had to make sure he was not rushing into a commitment for our team on the rebound from what happened at the Hurricanes. And he had to understand what we are about."
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