Pellegri become the joint-youngest player to play in Serie A when he made his debut in December 2016 at the age of 15 years and 280 days and in May made history with his first goal against AS Roma.
In September, he became the youngest player to score twice in a Serie A match when he was on target in the 3-2 home defeat by Lazio.
Despite that, Pellegri has made only ten competitive appearances and the move is likely to raise more questions about the workings of the international transfer market.
Monaco announced the signing on Twitter without giving any details of the transaction.
"I am very happy to join Monaco," it quoted Pellgri as saying. "I was very quickly convinced of the project that allows young people like me to progress and flourish in the future."
(Writing by Brian Homewood in Bern; Editing by Christian Radnedge)
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