"Everyone in Europe knows how strong and exciting the Paris Saint-Germain project is and I couldn't think of a better club for me to continue my progression and reach my objectives," Kehrer told the club's website.
Kehrer has four goals in 59 appearances in all competitions for Schalke. He played an important role as the club finished runners-up to Bayern Munich in the Bundesliga last season.
Kehrer also helped Germany lift the Euro under-21 title in Poland last year.
(Reporting by Shrivathsa Sridhar in Bengaluru; Editing by Christian Radnedge)
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