The former Hearts winger had returned to the UK to train with the Tynecastle side and also had an unsuccessful trial with Sky Bet Championship team Yeovil Town.
It was thought that the England-born winger - who is eligible to play for Scotland - would continue to look for a club in Britain, with speculation linking him with a return to Hearts. However, the 26-year-old has now agreed a new contract with Houston and will return to the United States ahead of the new campaign.
The deal has been described by Houston as a "multi-year deal with club options" and Driver was pursued after making 26 outings last season and a further five in the MLS play-offs. He also scored on his league debut, in a match with FC Dallas.
The winger has intimated his satisfaction at securing his return to the US on Twitter, while Houston are similarly delighted. "We are happy he is coming back to play for us this year," said Dominic Kinnear, the Houston head coach. "I thought he had a good season for us in 2013. Him returning for us in 2014 strengthens our midfield and our overall squad."