Cacace said he was “absolutely delighted” commit to Wrexham.
He added: “Looking from the outside, what they are creating here is something I want to be part of. The family they have here – it’s a tight-knit club and that enticed me.
“I had a great phone call with the manager, and after that I really wanted to sign.”
Boss Phil Parkinson said: “We are delighted to welcome Libby to Wrexham and look forward to integrating him with the squad on our return home.”
Cacace is Wrexham’s third signing of this summer following three successive promotions.
Parkinson’s side have also added Wales goalkeeper Danny Ward and former Plymouth Argyle forward Ryan Hardie as they embark on a first season in England’s second tier for 43 years.
Wrexham are in New Zealand to play Wellington Phoenix, Cacace’s first club, in a pre-season friendly on Saturday (06:00 BST).
Cacace, who was born in Wellington to an Italian father and a New Zealand mother of Italian descent, is primarily a left-back but can also operate further forward.
He played 93 games for Empoli since heading to Italian football in 2022, but had been linked with a move away following the club’s relegation from Serie A.
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