The Spanish attacking midfielder had 23 goals and 17 assists for Sevilla in all competitions including Europa League qualifiers last season.
Media reports suggested that the signing may herald a move out by PSG's Brazilian star Neymar, who has been widely linked with a move back to Barcelona.
"We are delighted to announce Pablo Sarabia, the 27-year-old attacking midfielder from Sevilla, has signed a five-year contract with PSG," the Parisian club said in a statement.
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($1 = 0.8846 euros)
(Reporting by Rohith Nair in Bengaluru; Editing by Hugh Lawson)
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