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The former Worcester and Edinburgh back, missed the Amlin Challenge Cup Final last season with Stade Francais due to injury but will be looking to help his new side qualify for the knock-out stage of the same competition this season.
The former Heineken Cup Champions find themselves up against French duo Bordeaux-Begles and Bayonne as well as Femi-CZ Rovigo in Pool 3 of this year's Amlin Challenge Cup.
On joining Wasps, Southwell said: "I'm delighted to sign a deal with Wasps and am really keen to get started. I have been encouraged by the squad that the club has put together and I believe Dai Young is building something really positive and I hope that I can add to that. Hopefully I can see some game-time early on and push on from there."
London Wasps Director of Rugby Dai Young said: "Hugo is a great addition to the squad for the coming season, adding depth to the back three which is an area we identified as somewhere we needed strengthening. We've got a lot of young talent in our backline so bringing in someone with fantastic international and domestic experience will be a huge boost to the squad. He has a lot to offer and we look forward to seeing him in action."
