The 33-year-old midfielder with 18 caps for Bafana Bafana enjoyed one of his best ever seasons in 2011/12, yet was left out of the plans when the current season started and has hardly featured at all.
His move to join Ernst Middendorp's squad will be for one year with an option to renew for another year.
"I am very happy. It did not look like Arrows were going to renew my contract at the end of the season so it was better for me to go and the club and I part ways by mutual consent.
"I enjoyed my time at Arrows, but it is time to move on," Sheppard says.
Durban-born Sheppard goes for his medical at Kings Park on Wednesday. After this he will travel with his new team to Johannesburg for a training camp.
"One of the reasons why I came to Durban originally is that Ernst Middendorp showed interest in me when I was still at Platinum Stars. He brought me to Arrows and has shown interest in me again.
"This is football and I have a different pressure now. The one pressure was that we were always fighting for relegation at Arrows.
"Now I am facing the challenge of helping a club fight for a top five place in the League. I am looking forward to the challenge and re-uniting with one of my good friends and ex-teammates Delron Buckley."
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