The 21-year-old defender spent last term on loan at Ajax Cape Town, making made 20 appearances for the Urban Warriors - who suffered relegation to the National First Division.
Malepe, who faces stern competition for game-time at Mayfair, is due to start training with Chippa this week.
New Chilli Boys coach Eric Tinkler confirmed the former national U-20 international is expected in Port Elizabeth.
"Yes, it's true we are expecting the arrival of Tercious Malepe in our team this week."
Tinkler started his reign in charge of the side with a 2-1 loss to former employers SuperSport United in the league last night.
The ex-Bafana Bafana midfielder took over the reins from Dan Malesela, who was sacked for a second time by club boss Siviwe Mpengesi barely three games into 2018/19.
Mpengesi's team are propping up the Absa Premiership standings with a point from four matches.