The Ligue 1 champions triggered the reported €18million release clause in the 27-year-old's contract earlier this week and he officially became a PSG player on Friday.
Sarabia is coming off the back of an impressive campaign with Sevilla that saw him score 12 goals and assist a further 13 in LaLiga.
He is reported to have turned down the offer of a new contract at the Ramon Sanchez Pizjuan, leading to speculation over his future.
And he has now joined Ander Herrera in signing for PSG by putting pen to paper on a contract that will run to the end of the 2023-24 campaign.
"I’m really excited to sign for Paris Saint-Germain," he told the club's official website. "After eight seasons in LaLiga, [joining] PSG now gives me the opportunity to take a very important step in my career.
"The club has gained an impressive international reputation in recent years and I am honoured to be part of PSG’s next major challenge, in France and in Europe. I am now looking forward to starting this adventure with this talented and ambitious team."
Sarabia came through Real Madrid's academy ranks but failed to make the grade at the Santiago Bernabeu.