The All Black flyhalf on Thursday announced that he will leave New Zealand rugby after next year's showpiece event to play for the French side.
Financial details of the deal with Paris-based Racing Metro were not revealed, but according to The Guardian, Carter will become the richest player in rugby. He is reportedly set to earn €1.5m (R21.4m) a year.
"I know what the French culture and their rugby culture is like and it's something I really love," the 32-year-old flyhalf told AFP.
All Black coach Steve Hansen offered his congratulations to Carter, saying he had set a benchmark in the No 10 jersey.
"He is still in the midst of a wonderful career, both as a provincial, Super Rugby player and an All Black, and will leave us as the greatest first five-eighth (flyhalf) ever," he said.
Carter has played 102 Tests for New Zealand, scoring a world record 1 457 points, and was named the world player of the year in 2005 and 2012.