The Mexico international flew to the Canary Islands this week to complete the move, which will not include an option to make the deal permanent.
Since February, he has been training with the first team, featuring in a friendly against Vissel Kobe at the start of June, during which time coach Xavi Hernandez was able to assess him.
Sources told ESPN that Barca have decided his development will be best served on loan at a Spanish club this season, allowing him regular minutes and giving him the chance to adapt to LaLiga.
Las Palmas, coached by former Barca B boss Garcia Pimienta, returned to the Spanish top flight last season after finishing second in the Segunda Division behind Granada.
Araujo's move to Barca made headlines in January because the documents to register the deal missed the Jan. 31 deadline by a matter of seconds.
Despite that, Barcelona still completed the transfer, bringing him to the club in February, allowing him to train with the team and get acclimated to a new country.
The California-born Araujo, who made over 100 appearances for the Galaxy in MLS, had previously been capped by the United States at youth and senior level, although in 2021 he declared for Mexico, the homeland of his parents.