The veteran right-back has signed a contract with the Brazilian club after leaving the French side at the end of his contract in June, reports.
Alves will be with the Brazilian giants until December 2022, it was announced on Thursday.
The 36-year-old – who first moved to Europe in 2002, joining Sevilla from Bahia – was a free agent following his PSG departure
after two years with the Ligue 1 champions.
Alves had been linked to former club Barcelona and the Premier League, however, the veteran has opted to return home to Brazil as he eyes the 2022 World Cup in Qatar. Sao Paulo president Carlos Augusto de Barros e Silva described Alves as "one of the leading players in the world" who is "recognised for his immense professionalism, his fierce determination and his endless thirst for titles and victories".
"Daniel Alves is the embodiment of what this management envisions for Sao 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," club president Carlos Augusto de Barros e Silva said in a statement.
"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."
Alves captained Brazil to Copa America glory on home soil in July. The right-back was also voted by organizers as the best player of the tournament. The veteran's transfer was announced in a video on Sao Paulo's Twitter account, with the defender expressing his excitement to be back in his native country playing for the club he supported as a child.
"I could've picked any other team to play for," Alves said. "But I chose to come back to Brazil, to my country, to my people. To the club I love. It's unreal, but I'm here!"
Sao Paulo also posted on Twitter that Alves would wear the No. 10 jersey at his new club. Brazil captain Alves, 36, signed a deal on a free transfer. Alves is the only player to win 40 trophies across club and international football and Sao Paulo referred to the signing as the “the most victorious player in the history of football”.
The former Barcelona and Juventus right-back will play Brazilian club football for the first time since 2002, with Bahia. Alves has been capped 115 times for Brazil, recently led his country to the Copa America title on home soil and was voted the player of the tournament.
Veteran Brazilian right back Dani Alves has signed a free transfer deal to play for Sao Paulo FC. The club announced the move Thursday in a video with the 36-year-old former Barcelona, Juventus and Paris Saint-Germain defender. Brazilian media reports the deal is valid until the end of the 2022 World Cup in Qatar.
Alves's contract with PSG expired in July. The Brazilian said then he would like to remain in European football.
Sao Paulo is in fifth position in the Brazilian championship after 12 matches. Alves, 36, left Paris St-Germain during the summer and joins the club he supports on a deal until December 2022.Sao Paulo referred to signing "the most victorious player in the history of football". He has not played club football in Brazil since 2002, with Bahia.
He has won league titles with PSG, Juventus and Barcelona in each of his last five seasons, having spent the last 17 years playing in Europe, In all, Alves won the league twice with PSG, once with Juventus and six times with Barcelona and also lifted the Champions League trophy with Barca on three occasions.
