Gelsenkirchen-born Altintop terminated his contract with Turkish club Trabzonspor over the weekend and has now signed a two-year deal with the Bavarian club, who narrowly avoided relegation to the second division last season.
"This transfer was achievable thanks to his contract termination with Trabzonspor," said Augsburg's director of sport Stefan Reuter.
"We are delighted that Halil Altintop has decided to join Augsburg and thus return to the Bundesliga."
Augsburg coach Markus Weinzierl also welcomed the signing, having seen South Korean forwards Ja-Cheol Koo and Ji Dong-Won leave this summer.
"Halil Altintop has proven his quality not only in the Bundesliga, with over 200 appearances and 47 goals," he said.
"I am delighted that we are getting an experienced forward who will be able to improve our team, not only sportingly, but also with his leadership qualities."
Altintop will wear the number seven shirt for his new club, and he cannot wait to link up with his new team mates in their pre-season training camp in Ruhpolding.
"It's great to be able to come back to Germany and to the Bundesliga," he said. "I am really looking forward to my time with Augsburg."