Hyde, who turns 30 in September, scored six touchdowns and ran for a career-best 1,070 yards on 245 carries for the Houston Texans last season and played in all 16 games for the second time in his career.
The Seahawks have been searching since early in free agency for a veteran to reinforce their backfield with starter Chris Carson and 2018 first-round pick Rashaad Penny both coming off season-ending injuries.
The Seahawks had offered Devonta Freeman a one-year deal, sources confirmed to ESPN. They moved on to Hyde, who will be an early-down complement to Carson, at least until Penny returns.
Penny is recovering from surgery to repair a torn ACL and other damage in his knee he suffered in December. The Seahawks believe there's a strong possibility Penny will have to begin the season on the physically unable to perform list, in which case he'd have to miss at least the first six games. Carson (hip) is expected to be ready by Week 1.
The rest of the Seahawks' backfield is young, another reason why Seattle had been seeking a veteran running back. Behind Carson, Hyde and Penny, the Seahawks have second-year pro Travis Homer and three rookies: fourth-round pick DeeJay Dallas and undrafted free agents Patrick Carr and Anthony Jones.
Marshawn Lynch told ESPN's Scott Van Pelt earlier this month that his agent had been in talks with the Seahawks about a potential return to Seattle.
The Texans acquired Hyde from the Kansas City Chiefs last year in a trade on cutdown day in exchange for offensive lineman Martinas Rankin. Houston made the move a week after Miller tore his ACL in Houston's third preseason game.
He has 5,079 total yards and 35 total touchdowns in six seasons.
ESPN's Brady Henderson and Sarah Barshop contributed to this report.