The rapper will join his X Factor mentor LA Reid at the record label which is also home to the season one winner Melanie Amaro.
Astro said in a statement: "I'm excited to continue my journey with LA Reid and his staff at the new Epic Records. The first time LA saw me he said I'd be a star, and I can't wait to get to work and prove him right. 2011 was Dope, but 2012 is gonna be Epic!"
He earlier teased the news on his Twitter account, writing: "NYC #ASTROnauts pick up the Daily News today. Page 11. Great news for #TeamASTRO! Everyone else can tune in to @MTVRapFix at 4pm on MTV.com (sic)"
In the interview with the New York Daily News, the teenager said: "It's like a dream. . . . I can finally say I'm working on my album."
MTV News reports that Astro will share further details on the deal during his appearance on MTV Rap Fix today (January 18).
X Factor judge Simon Cowell had hinted back in December that the 15-year-old was in line to sign a deal following his appearance on the show, where he showed off his rapping skills with a series of original performances.
"We can't sign everyone, but there's going to be quite a few that are going to get deals," he told The Hollywood Reporter.
"You're not going to let Astro go. You're not going to let Chris [Rene] go [or] let Josh go. We'd be mad. But [Melanie Amaro] is the priority."
Astro's deal comes following news that fellow contestant Chris Rene, who was also mentored by Reid, has signed to Epic Records too.
> Read Digital Spy's full X Factor headlines
Watch Astro performing on X Factor below: