The 22-year-old Dixon, who made 20 appearances for Saints in 2012, linked up with his old back-row partner Matty Ashurst for the start of pre-season training this week.
"Andrew will do well for us," Reds coach Phil Veivers said. "He has a wealth of Super League experience from his time at St Helens, he's young and hard-running. He will fit in well with what we are trying to achieve next season."
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Salford have lost seven members of last season's squad and Dixon is expected to be the first of at least five new faces once the club's proposed takeover is completed.
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