The Brazilian side confirmed that the ex-Barcelona, Sevilla, Juventus and Paris Saint-Germain star is joining the club on Monday night.
Alves, 36, is a boyhood fan of the Tricolor and has signed a three-year deal to play his trade at the Morumbi.
Alves leaves Europe having won 36 major club honours, following his arrival at Sevilla in 2002.
The 115-cap Brazil star has been a free agent since leaving PSG in June.
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He subsequently captained the Selecao to Copa America glory on home soil.
Club president Carlos Augusto de Barros e Silva hailed the arrival of Alves.
"Daniel Alves is the embodiment of what this management envisions for São Paulo: One of the leading players in the world and recognised for his immense professionalism, his fierce determination and his endless thirst for titles and victories.
“He is also a socially engaged citizen and passionate about our country. Sao Paulo, therefore, wins on every possible front.
“One day I told Daniel that he would come to play at Sao Paulo, the club of his heart.
"Today I have the immense joy and pride to have kept that promise.”
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