The 35-year-old left hander has represented Australia in every format and will make the move to reigning champions next summer having spent his BBL career to date in Perth.
Marsh sits in the top 10 BBL run scorers of all time, having amassed 1435 runs in 37 appearances.
Marsh said he was looking forward to a new BBL chapter at Marvel Stadium.
“I’d like to thank everyone at the Scorchers who have supported me over the years – it was a very successful period for the club,” Marsh said.
“But I’m ready for a new challenge and the opportunity to join the Renegades on the back of such a successful season is very exciting. I’ve spent a lot of time with Finchy and know the other guys well, so I’m looking forward to it.”
Melbourne Renegades Head Coach Andrew McDonald said it was an important signing.
“Shaun is one of the most experienced players in the country and excels in white ball cricket. His BBL record speaks for itself and he’ll give us even greater flexibility at the top of our batting order. We’ve been on the end of a few of Shaun’s big performances over the years so it’s nice to have him as a team mate instead,” McDonald said.
Melbourne Renegades CEO Stuart Coventry said Marsh’s signing was a coup for the champions.
“Given his obvious talent, Shaun is someone who has been in our sights for a while and we moved pretty quickly to make it happen. I know the members and fans will be pretty pumped to be adding a player of Shaun’s calibre to our batting stocks,” Coventry said.
“Naturally we’re still celebrating our win, but we’re also working hard on our list to give ourselves the best chance of being able to defend it again next season.”
Marsh is currently away with the Australian ODI squad on the Qantas Tour of India.
