Rico joined PSG on a season-long loan last September. He played 10 games in all competitions, helping the side win the Ligue 1 title, the Coupe de France and the Coupe de la Ligue and reach the final of the Champions League.
The clubs have agreed on a fee of around £5.3m and Rico has signed a contract until 2024.
According to statement from PSG reads: 'The club would like to congratulate Sergio and wish him every success as he continues his career with the Rouge-et-Bleu.'
Rico, who has won one cap for Spain, made 170 appearances for Sevilla in all competitions, winning two Europa League titles during his time with the Spanish club.
He fell down the pecking order during his time with the club, however and spent the 2018-19 season on-loan at Fulham when they were relegated from the Premiership.
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