Tovey is the record points scorer for the region, with 951 points in all competitions, with his best return of 215 points coming for the Men of Gwent in season 2013/14.
The 29-year-old made 117 appearances for the Dragons during seasons 2007-12 and 2013-2016, with a year sabbatical to Cardiff Blues in between, before joining Edinburgh first on loan in 2016.
Following impressive performances on loan the fly half secured a two-year deal in the Scottish capital, returning to Wales last summer to join Welsh Premiership club Cross Keys where he played as a youth.
The former Wales Under-20 international is the sixth highest points scorer in PRO14 tournament history, two points behind Felipe Contepomi, and is in contention for selection for the Dragons as they travel to Belfast this weekend to take on Ulster.
“I’ve enjoyed being back in Wales with Cross Keys,” said Tovey, “but I’ve been training with the Dragons for a couple of weeks now and it’s good to step up to regional level.
“There’s been plenty of changes here since I left, but there’s still familiar faces here and I’ve enjoyed slotting back in, so can’t wait to pull the Dragons shirt on again.”
“Jason has been in training with us this week and last week and he looks really sharp,” said Dragons Head Coach Bernard Jackman.
“We’ve injuries to a number of our tens, so we’re lucky to have a player of his experience in and from our region who is available for us to call upon.
“We enjoy a good relationship with all the Premiership clubs in our region, regularly sending players out to them, and on this occasion we’re grateful to Cross Keys for their support and allowing Jason to have this opportunity.
“He has great composure and game management from his experience in the game. He knows when to find space and gives people inside and outside of him assurance, whilst his talent with the boot is there for all to see, just look at his kicking record.
“The boys here who know him from his previous time at the Dragons were really enthusiastic about him coming back.”
Cross Keys Head Coach Morgan Stoddart said: "Jason has shown his class since his return to Wales and his kicking percentage is still up there with the best 10s in the PRO14, so it was no surprise when the Dragons got in touch.
“His experience has given us a boost, but the chance to work with the Dragons again is one we understand he can’t turn down.
“Whilst we have our own objectives as a club and squad in a competitive Premiership league, we’re fully supportive of what Bernard is trying to achieve at the Dragons both at senior level and within the region, through the draft of player allocations.”