He was India captain Rohit Sharma's opening partner in the home T20 series against Afghanistan earlier this year but his place looked under threat as he struggled for runs in the IPL
"I am extremely happy to have joined PSG," Alves said after signing a two-year contract following his release by Juventus.
"The past few years I saw the formidable growth of the club and its place as one of the strong teams in European football. It is exciting to be a part of this grand project," added the 34-year-old full-back.
The Brazilian had seemed likely to link up with his former Barcelona manager Pep Guardiola at Manchester City.
Alves spent four years under Guardiola in Spain, winning the Champions League twice in that time, but a reunion never materialised.