Proctor returns to the southern hemisphere stage following four seasons in the English Premiership, where he played for Northampton alongside Lukhan Salakaia-Loto, who signed with the Rebels in June.
Wallabies star Andrew Kellaway was also at Northampton before shifting to the Rebels in 2020.
Proctor, who started in the No.13 jersey for the Hurricanes when they won their maiden Super Rugby title in 2016, made his New Zealand Test debut in 2018.
He featured just once for the All Blacks, against Japan, and has made a name for himself for his fierce ball- carrying.
Proctor said he was a more rounded player after his UK stint.
"I'm looking forward to my return to Super Rugby," he said in a statement.
"I've experienced a different style of footy over the past four seasons playing in the UK, which has been massive for my development as a player and a person, so I'll be returning to Super Rugby a more experienced and well-rounded player."
Melbourne coach Kevin Foote highlighted Proctor's style of play and competitiveness as valuable additions to the Rebels 2024 squad, with Hodge departing to play in France.
"Matt Proctor is someone who is team-first and hungry to achieve with the Rebels, and will bring invaluable top-level experience having played on the Super Rugby, English Championship and Test stages," Foote said.
"We believe Matt's style of play, his explosive ball-carrying and resolute defensive prowess, synergises perfectly with our game model - fast, fearless and resolute."
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