In a statement, Vettori said: "It's a privilege to be able to step in and help the Tallawahs defend their title. Having heard so many positive words about the CPL from my fellow cricketers, when the opportunity to come to the Caribbean and play in arguably one of the world's most flamboyant and exciting T20 competitions came along, I couldn't turn it down."
Damien O'Donohoe, chief executive of the Caribbean Premier League, said: "Murali certainly leaves big shoes to be filled at the Tallawahs, but we're confident Daniel has the ability and personality to become a valuable asset for the team."
Ross Taylor, Martin Guptill and Corey Anderson are the other New Zealanders involved. The CPL starts on July 11.