Ex-Chelsea winger Malouda joins Luxembourg club
The 37-year-old has been living in the country for several months and Differdange, who were runners-up in the Luxembourg league last season, announced they had signed him on a six-month deal.
"He was looking for a club where he could train and we reached an agreement so he could give us a hand until the end of the season," club president Fabrizio Bei told AFP, adding that Malouda started training at the club in October.
Malouda is currently awaiting a decision from the Court of Arbitration for Sport after he appealed a two-match international ban for playing for French Guiana at last year's CONCACAF Gold Cup while ineligible.
He was capped 80 times by France and played in the 2006 World Cup final loss to Italy.
Malouda spent six seasons at Chelsea after signing from Lyon in 2007, winning the 2010 Premier League title and the 2012 Champions League.
Differdange are seventh in the 14-team league this season and Bei hopes Malouda can help propel them up the table.
"We have been top three for ten years and we have played in the European Cup. We want to play in it again this year and Malouda can help us," Bei said.