The midfielder had joined the Bundesliga side from Schalke in 2015 for €36 million. After spending a year and a half, Draxler is on his way to join one of the top European sides.
PSG confirmed the news on Twitter as well as on their official website. Their Tweet read.
The official statement from the club read: "Paris Saint-Germain are delighted to announce they can welcome Julian Draxler into the French champions' squad.
"Signed from VfL Wolfsburg, the Germany international signed his contract with the capital club this Monday. He is now tied to the club until 2021."
After signing for the French giants, Draxler said: "It is with great joy and anticipation that I join Paris Saint-Germain, said Julian Draxler after signing his contract.
"For the first time in my career, I'm going to discover a new country, a new league, and I'm very proud to take this new step at a club which has become a benchmark in Europe and has signed a lot of great players in recent years.
"I will do everything to help PSG win new trophies and continue to grow internationally."
Club CEO Nasser Al-Khelaïfi spoke on their new signing and said: "I am delighted to welcome Julian Draxler to the Paris Saint-Germain family.
"The transfer of this highly sort after Germany international reconfirms just how attractive our Club is to the world's most talented players.
"He has all the qualities to play a major role in the Club's project and become a fan favourite. With the signature of Julian Draxler, we are maintaining PSG's extremely high ambitions, where all our supporters want us to see their club succeed."