Valencia sign Belgian starlet Bakkali
Valencia said in a statement that the 19-year-old winger had penned a contract until June 30, 2020 after his deal with the Dutch champions came to an end.
"I am very young and it is a big step for me to join a club with the tradition and qualities of Valencia CF, in such an attractive and competitive league," said Bakkali, who had turned down a new contract with PSV and had been wanted by Celtic.
"I had decided a while ago that I wanted to continue my career away from Eindhoven and I had many options from which to choose."
Bakkali, who started out as a youth at Standard Liege, made his full international debut for Belgium against Wales in a World Cup qualifier in October 2013.
Valencia have already signed Andre Gomes and Rodrigo on permanent deals this summer after spending last season on loan at the Mestalla from Benfica.
On Saturday they added young Celta Vigo forward Santi Mina, while former England international Phil Neville was recently named as the club's new assistant to coach Nuno Espirito Santo.