The Premier League side confirmed it has completed its swoop for the 24-year-old on Thursday (AEST) after the forward passed his medical.
Jese, formerly of Real Madrid, will hope to revitalise his career with Stoke after his move to PSG last year, reportedly worth $A37.1 million, did not prove successful.
Stoke chief executive Tony Scholes was delighted to win what he revealed was a competitive race to secure the signature of Jese, who becomes the club's sixth signing of the transfer window.
"Jese was a man in demand when PSG made it clear they would allow him to leave on loan and we're delighted he has chosen to join us," he said.
"He hasn't had the happiest of periods in his career in Paris but he's still only a young man and is hungry to make a big impression in the Premier League.
"His pedigree speaks for itself and he will most certainly add to the firepower at our disposal."
Two-time Champions League winner Jese only made nine Ligue 1 appearances for PSG, starting just once, before spending the second half of last season on loan at Las Palmas, where he scored three goals in 16 LaLiga games.
PSG also confirmed the loan switch, but insisted Stoke do not hold an option to buy Jese permanently as part of the agreement.
Stoke, which lost 1-0 to Everton in its Premier League opener, is at home to Arsenal on Sunday (AEST).