The Belgium international had been linked with a switch to the Premier League over the past 12 months, with the likes of Arsenal, Manchester United and Tottenham having all been mentioned as possible destinations.
However it is Bundesliga giants Dortmund that have won the race for the 28-year-old, with Meunier signing a four-year contract that will run until 2024.
Explaining his reasons for joining the club, Meunier referenced BVB's passionate support, with the defender having witnessed the famous Yellow Wall up close as PSG dumped the German side out of Europe this season.
The Belgian told the club's official website: "Borussia Dortmund plays exactly the football that I want to play: exciting, authentic and natural. BVB are known for their enthusiastic fans and the atmosphere during the game with PSG at Signal Iduna Park really influenced my decision.
"I am ambitious and, like when I was in Bruges and Paris, I would like to win titles with Dortmund."
Olé Olé, Thomas Meunier 🇧🇪 pic.twitter.com/iD3qOMpTqy— Borussia Dortmund (@BlackYellow) June 25, 2020
As confirmed by Goal, Meunier, along with his former PSG team-mate Edinson Cavani, had already decided that he wouldn't make himself available for the remainder of the Ligue 1 club's Champions League campaign.
Thomas Tuchel's side are in the quarter-finals of the competition, which will now be staged in Lisbon in August as a mini-knockout tournament after the repercussions of the coronavirus pandemic resulted in a change in format.
However both Meunier and Cavani will be departing when their contracts expire on June 30, dealing a blow to the French capital club's hopes of winning the competition for the first time.
As for Dortmund, sporting director Michael Zorc, who himself signed a new contract with the club until 2022, also revealed that head coach Lucien Favre will be remaining in his position for next season.
He told reporters: "We have a lot of trust internally and will have talks [with Favre] in due course."
Dortmund will finish the 2019-20 campaign in second place, with BVB playing their final match of the Bundesliga season on Saturday as they host Hoffenheim.