Essien, 36, has been a free agent since ending his contract with Indonesian side Persib Bandung in March last year.
It was reported that the former Chelsea and Real Madrid midfielder was set for retirement, however, he's now signed a deal with Azerbaijan Premier League side Sabail FC.
The club, who was formed only three years ago has secured the veteran midfielder on a deal until May 2020 and will assist the coaching staff of the club's Under-19 side as part of his quest for his coaching badges.
"I was here three weeks ago. Had a good chat with the club and they told me about the project. I thought about it, liked it and here we are," he told the club's website.
"It's a different thing to what I have seen before. Looks interesting and exciting, so happy to be here."
The Sailors are currently in third place, 14 points off Netfchi and Qarabag FK, who are in first and second place respectively.