Warne, who had retired from all formats of cricket, led the Royals in the first four seasons of the IPL, but for the upcoming season Rahul Dravid would captain the side.
"I am delighted to have signed with the Rajasthan Royals. I am looking forward to donning their royal blue and playing with the squad this April", said Owais Shah on signing up for the Royals.
The 33-year-old Shah, who represented Kolkata Knight Riders, Delhi Daredevils and Kochi Tuskers Kerala in previous seasons, has a lot of experience of playing in the IPL.
"We are delighted to have signed on Owais Shah to play for the Rajasthan Royals. He is one of the most exciting batsmen in the world and has been particularly outstanding in the shorter forms of the game," Raghu Iyer, CEO, Jaipur IPL Cricket Pvt Ltd, said.
Shah has also played 71 ODIs and 17 Twenty20 internationals for England and has a half-century in the shortest format of the game to his credit.