The 37-year-old midfielder has no plans to retire despite being released by Maccabi Tel Aviv.
Benayoun said: “I’m excited about joining a team that I’ve been a fan of all my life and working under my childhood hero Eli Ohana.
“I can’t wait to play in front of the Beitar fans.”
Benayoun returned to Israel in 2014 after nine years in England with West Ham, Liverpool, Chelsea, Arsenal and QPR.
He won a record 99th cap for Israel in the 3-0 home defeat to Albania last week.
