The replacement will be effective from May 26.
He replaces South African pacer Lungisani Ngidi, who was ruled out of IPL 2024 with injury.
Hardik Pandya has quit Gujarat Titans to rejoin his former team Mumbai Indians, following a trade between the two franchises.
Young pace sensation Lungi Ngidi has been rewarded for his recent performances with a place in South Africa's squad for the six-match ODI series against India starting in Durban on February 1.
SunRisers Hyderabad has the biggest purse while Kolkata Knight Riders has the slimmest purse.
South Africa will be without limited-overs stalwarts Hashim Amla and JP Duminy for their white-ball tour of Australia next month but welcome back all-rounder Chris Morris from injury.
Sri Lanka left-arm spinner Lakshan Sandakan took four wickets on his debut in a three-wicket victory over new-look South Africa that levelled the three-match Twenty20 series on Sunday.
In other big movements, Punjab Kings have released their last edition's captain Mayank Agarwal, while West Indies skipper Nicholas Pooran was released by Sunrisers Hyderabad.
The 34-year-old Steyn, currently on a short-term contract with Hampshire having been plagued by injury over the last two-and-a-half years, is three wickets short of a milestone that has frustratingly eluded him in recent times.
Chennai Super Kings comprises some of the oldest players in the Indian Premier League, and captain Mahendra Singh Dhoni knows fully well that they cannot be a great fielding outfit but can make it up in batting and bowling.
The former opening batsman joined as DOC in December last year following the suspension of CEO Thabang Moroe and has since signed a two-year deal with the option of extending for a third term.
Rabada, the number one ranked Test bowler, could still play if he succeeds in his appeal against an International Cricket Council (ICC) decision to award him three demerit points for his reaction to dismissing Steve Smith in the second Test.
No Indian men's side since its first tour in South Africa back in 1992, has ever won a series across any format
With an unassailable 3-0 lead in hand, India need just one more win to claim their maiden ODI series triumph on South African soil.
Having won the series, India would like to carry on momentum forward, especially with the three-match T20I series to follow soon after. Yet, the visitors would also like to find a balance between going all out in a dead rubber and resting a few players keeping in mind a long overseas schedule later this year.
India will look to crush a South African revival before it becomes a threat to their pursuit of a maiden ODI series triumph here when the two sides clash in the fifth one-dayer, on Tuesday.
A buoyant India will look to cash in on South Africa's injury woes, compounded by the loss of captain Faf du Plessis, when the two sides meet in the second One-Day International in Centurion on Sunday.
The visitors won the first two matches of the series in Durban and Centurion by six and nine wickets, respectively, dismantling the home side with consummate ease.
India have never won an ODI series in South Africa, having lost 5-2 in 1992-93, 4-0 in 2006- 07, 3-2 in 2010-11 and 2-0 in 2013-14.
590 cricketers -- including 370 Indian players and 220 overseas players -- will go under the hammer during the two-day mega auction in Bengaluru on February 12 and 13.
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