The 22-year-old, who is Welsh-qualified with family ties in Newbridge, will link up with the Dragons squad in December.
Last weekend saw the versatile player make his PRO14 debut as he came off the bench for the Kings against Ulster.
Commenting on his contract with the Dragons, Sage said; “I have continuously followed the Dragons over the years and joining the Region was an opportunity I couldn’t resist.
“My father is from Wales and being able to join the Dragons is a real privilege for me. I always planned on heading overseas to Wales one day!”
He continued; “Bernard Jackman is creating a very good culture and I am excited to be able to contribute towards it and learn from everyone involved.”
Dragons Head Coach Bernard Jackman added; "Jarryd is a young hardworking player that has come through excellent player development systems at Western Province and the Lions.
“He can play inside or outside centre and has the ability to play wing if needed. I have been tracking him since June and because he had a release clause in his contract at the Southern Kings, I felt it was better to get him into the environment immediately rather than wait until next season.”
Sage joins the Dragons in time for a run of five home fixtures in December, starting with the PRO14 clash with Ulster, followed by two home European ties and two home Welsh derbies. Secure your tickets for the action, priced from £10 by clicking here.