The 30-year-old initially left the club earlier this summer, but has failed to get a new club.
Cole returned to train with West Ham last month and has now agreed an initial three-month deal with the club.
Cole will be able to play against Manchester City this Saturday evening.
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Summer 2016 is set to be a very exciting time for football fans, as this is when the long awaited Euro 2016 tournament kicks off.
Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.