Feghouli, who has been capped 40 times by Algeria, will join the London club on July 1.
"I am very happy to sign for the Hammers and for (coach) Slaven Bilic," Feghouli said on the club's website (whufc.com).
"The history of the Club is important for me in my decision. Playing in the Premier League is very important for players in their careers and I am happy to play for the Hammers."
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(Reporting by Nivedita Shankar in Bengaluru; Editing by Robin Pomeroy)
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