Pellegrini guided Manchester City to their first Champions League semi-final last season, but announced in February that he would leave the Etihad Stadium on June 30, with the club immediately naming Pep Guardiola as his successor.
The 62-year-old Chilean, who won the Premier League - in 2014 - and two League Cups - in 2014 and 2016 - with City after taking over in 2013, joins big-name coaches Sven-Goran Eriksson of Shanghai SIPG and Guangzhou Evergrande's Luiz Felipe Scolari in China.
Hebei, who are fifth in the Chinese Super League standings, face leaders Guangzhou on September 10.
Their squad includes Argentina's Ezequiel Lavezzi, who moved from Paris Saint-Germain earlier this year, former Arsenal forward Gervinho and ex-Chelsea winger Gael Kakuta.
Pellegrini will take over as coach from former Everton midfielder Li Tie who had been in charge for just over a year.
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