The La Liga side agreed to pay Nani's $12.5 million buy-out clause days after Fenerbache president Aziz Yildirim confirmed the 29 year-old would leave the club.

“Valencia have reached an agreement with Portugal international Luis Carlos Almeida da Cunha ‘Nani’ that ties the player to our club for the next three seasons,” a Valencia statement read.

Having won four Premier League titles and the Champions League at Old Trafford, he made 46 appearances for Fenerbahce last season, scoring 12 goals as the club finished second in the Turkish Super Lig.

Nani is Valencia's first dip into the transfer market for the 2016-2017 season, with Pako Ayestaran looking to build on a bumpy campaign last time out.

Nani is currently in camp with Portugal preparing for its UEFA EURO 2016 semi-final against Wales on Thursday (AEST).