The 27-year-old playmaker has penned a five-year contract with the Ligue 1 champions.
A move to France had been mooted for some time.
With uncertainty shrouding the future of Neymar at Parc des Princes, PSG have moved to ensure that they are not left short of attacking options.
Sarabia arrives having spent three productive years with Sevilla.
During that time he recorded 43 goals in 101 appearances.
Prior to that, the exciting midfielder enjoyed a five-year stint with Getafe.
Just one competitive appearance was made for the Blancos, with that coming back in December 2010.
A solitary outing for Madrid came in a Champions League clash with Auxerre, when he was introduced off the bench as a replacement for five-time Ballon d’Or winner Cristiano Ronaldo.
His undoubted potential has been unlocked away from the Santiago Bernabeu.
🆕 ✍️🇪🇸— Paris Saint-Germain (@PSG_English) July 2, 2019
We are delighted to announce @Pablosarabia92, the 27-year-old attacking midfielder from @SevillaFC_ENG, has signed a five year contract with @PSG_English!
📷 🎥 You can catch Pablo's arrival on Friday on https://t.co/E6vTM9jbI5#WelcomeSarabia
🔴🔵 #ICICESTPARIS pic.twitter.com/m3eU9Hy4JK
PSG are hoping to bring even more out of Sarabia in the years to come.
Chelsea were linked with an approach at one stage, but the Premier League outfit have been stung with a two-window transfer ban.
Sevilla have wished him all the best as he prepares to open a new chapter.
They said in a statement on the club’s official website: “Sevilla FC wishes to thank Sarabia for all of the great work that he carried out now that his time as a Sevillista comes to a close.
“He displayed enormous professionalism at all times and we wish him the best of luck in his new professional adventure.”