The Frenchman joins Spurs following a disappointing spell in Paris, where he managed 11 goals in 54 appearances.
Kolo Muani spent last season on loan at Juventus in Serie A and fared much better with 10 goals in 22 games, form that could translate well in the Premier League.
"I'm really happy and very proud to be at such a great club. I can’t wait to meet my team-mates, all the fans, and to get out on the pitch," said Kolo Muani.
"I know what the coach expects from me. I will fight hard for the shirt, the Club and the fans. I will give everything for this team."
Spurs' latest acquisition joins fellow summer signings Xavi Simons, Mohammed Kudus, Joao Pahlinha and Kota Takai - on top of the permanent additions of Mathys Tel and Kevin Danso, who had previously been on loan in north London.