The news ends a long transfer saga for the 21-year-old, who led Pachuca to Liga MX and CONCACAF Champions League titles and reportedly had Manchester City, Benfica and Celta de Vigo among his other suitors.
"I’m always going to try to give my best, I’m going to work hard, always do the best daily. I’m going to try to put everything into every game and try to do the work to always make the difference on the pitch," Lozano told PSV's official website.
On Monday, Lozano, known as "El Chucky" thanks to his childhood pranks reminiscent of the horror movie villain, left the Mexico camp where he is with El Tri for the Confederations Cup to go through fitness tests and see Eindhoven. He'll be back with the national team Tuesday to prepare for Wednesday's match against New Zealand.
The deal will run through the summer of 2023, the Eredivisie club announced, with Lozano set to sign the deal and join the team ahead of its Europa League qualification matches.
"I'm glad it finally succeeded. We spent more than six months working on this transfer and some creativity was needed to eventually get the transfer through," PSV technical director Marcel Brands said in a statement.
Lozano generally plays as a left winger, though he is right-footed and has played on both the right wing and in the center at times during his career.
"I like to play as a winger. I’ve played there almost my whole career, on the outside, so I’m more used this and I like that more but I can play in the middle of the field without any problem," he said.
He joins PSV, a club where Mexico international Andres Guardado currently plays and El Tri defender Hector Moreno just left to sign with Roma. Lozano said he'd spoken with both players and heard great things about his new side.
"They said it’s a really good club with a bright future and is a good project and that everything is really good at the club, the stadium, everything," he said.
Pachuca released a video of president Jesus Martinez thanking Lozano and those who helped develop the player as he prepared to sign the paperwork to finalize the deal.
"We hope that in many years your career will bring you back to this great institution, Club Pachuca," Martinez told Lozano in the video. "I love you, enjoy it all."