The 35 year old who has previously played for Rangers, Hearts, Celtic and Coventry was signed after a spell with Randers FC in Denmark.
Manager John Hughes told the Club Website :
"I'm delighted to sign a player I have admired for many years.
"His experience and leadership will help shift the responsibility off other players."
"He will also help nurse the younger guys along.
"I have to thank the Falkirk board for making the for making the budget available for Steven."
Pressley is also an assistant to Scotland manager George Burley and was attracting interest from Craig Brewster and Inverness CT.