The announcement was made by Dynamos, who are campaigning in the Zambian FAZ Super League.
The defender was part of the Chipolopolo team that reached the 2018 Cosafa Cup final in Polokwane where they lost to regional rivals Zimbabwe.
His exploits attracted interest from SuperSport, who have since signed him to beef up their defence.
Dynamos revealed that the player joined Matsatsantsa following successful negotiations between the two clubs.
A club statement read: "Power Dynamos FC international defender, Billy Mutale has moved to SuperSport United FC of South Africa on a permanent transfer. Mutale’s move comes in the wake of the successful conclusion of negotiations held with SuperSport United."
"Mutale joined Power in 2014 and has spent five seasons at the Club with his current contract expected to expire at the end of the 2018 football season. The Club considers the decision good for the player’s personal career development and growth in a highly competitive league coupled with international exposure and a possible gateway into much a more advanced league in Europe."
"At Power, Mutale was a formidable player and a cherished pillar as he always displayed mature disposition and leadership on and off the pitch. We would like to commend him for being upfront with his intentions to move and achieve desired personal objectives and for the deep trust he has built with the Club based on a mutually beneficial relationship."
Mutale is the second Zambian player to join SuperSport from Dynamos in the current PSL July-August transfer.
Highly-rated defender-come-forward Ghampani Lungu recently joined the Tshwane giants from Aba Yellow as Dynamos are affectionately known Zambia.