Nanterre - British and Irish Lions and Wales scrum-half Mike Phillips has signed for Racing-Metro, the French Top 14 club said on Monday.
Earlier in the day, club president Jacky Lorenzetti had announced the 31-year-old was close to penning a deal.
But the club then issued a statement, saying: "Racing Metro 92 is happy to announce the signature today (Monday) of Welsh international Mike Phillips.
"For several months, Racing has been negotiating with Phillips and his agents with the aim of recruiting him for the 2014-15 season.
"The recent events in Bayonne have only precipitated his signature."
Phillips was dismissed by another top-flight French side, Bayonne, in late October for allegedly being drunk when he turned up for a video analysis session.
He denies the charges and has launched legal proceedings against the Basque side.
He has signed a two-and-a-half-year deal and officially joins the club on Tuesday.
"He will be available for selection for this Saturday's Heineken (European) Cup fixture against Harlequins in Nantes," said Racing.
Phillips, who played for Wales in their just-concluded November Test matches against southern hemisphere sides, has played 80 times for his country and also made five appearances for the combined Lions side, including two on their successful tour to Australia in June and July.
He will face tough opposition for a place in the starting line-up with France international Maxime Machenaud currently in the No.9 shirt, backed by Laurent Magnaval, Sebastien Descons and South African Ruan Snyman.
Racing also announced on Monday the beginning of construction on a new 32,000-seater stadium to be built in the Parisian suburb of Nanterre.