The attacking midfielder has signed a five-year contract at his new club, although he will spend the first half of the 2016-17 campaign with the Argentine Primera Division team as part of the agreement.
The deal is believed to be worth around €10 million, while Central could receive up to a further €4m in bonuses.
Upon completing a move to the Ligue 1 champions, he told the club's official website: "I'm delighted to have signed for Paris Saint-Germain. I will soon join one of Europe's most important clubs with a squad comprising numerous great players, including my compatriots Angel Di Maria and Javier Pastore.
"I hope to follow in their footsteps and become a key player for my future club.
"I would like to thank Paris Saint-Germain for the faith they have shown in me, and also the club where I came through the ranks, Rosario Central, which allowed me to fulfil my dream of becoming a footballer."
Lo Celso is currently with the Argentina Under-23 team preparing for the Olympic Games in Rio de Janeiro.