Saha signed a six-month deal to join Tottenham from Everton in January and had hoped to remain at White Hart Lane after being impressed with Harry Redknapp.
Redknapp's departure ended Saha's hopes of remaining at Tottenham but he has now been snapped up by Martin O'Neill on a one-year deal.
The 34-year-old, who had tweeted that he was in talks with the Black Cats, has put pen to paper in time to be included in the Sunderland squad for the Premier League opener against Arsenal on Saturday.
"Louis is a striker whose abilities have been proven at the very highest level and he brings with him a raft of experience of top-flight football," O'Neill told the Sunderland website.
"I'm sure he will be a great addition to our squad in an area we recognise needs strengthening and I'm delighted we have been able to complete the deal ahead of our first game of the season."
Saha first arrived in England in 1999 and following spells at Newcastle and Fulham he moved to Manchester United where he netted 42 goals in 124 appearances.
He joined Everton in 2008 but made the switch to Tottenham on the final day of the January transfer window.
"This is a great opportunity; I'm really pleased with the chance to play for such a great club," said Saha. "I'm delighted and obviously I'm looking forward to start playing for the team.
"The club has very passionate fans, they really look to help the team and there are many things to achieve. So I'm delighted with the choice and the opportunity to play for such a great football club.
"Martin O'Neill has great experience and done great since taking over as manager. It's a great chance to play under him and I hope to help the side to achieve something."
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