The 35-year-old midfielder is leaving AC Milan after 18 months to return to the club where he won four Dutch league titles in six years from 1999-2005.
"This feels a bit like coming home," Van Bommel told reporters in Eindhoven.
He said the move back to the club where he first made his name was not a case of easing into retirement.
"I believe I can still be of value to this team and help PSV win the title back after a number of years," said Van Bommel.
"In Italy, they don't look at whether you are young or old - you are good or bad and in Italy they still think I'm good."
The hard-tackling midfielder announced his departure from the Serie A on AC Milan's website over the weekend.
After leaving PSV, he joined Barcelona, before transferring to Bayern Munich and then Milan. He won league titles with each club.
Van Bommel, who has made 74 international appearances, is expected to captain the Netherlands at the European Championship next month. The World Cup runner-up is in a tough group, with Germany, Portugal and Denmark.
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