Pawlowski will link up with Bernd Schuster's squad from Widzew Lodz immediately and add depth to a squad decimated by several key departures in the close-season.
Isco, Jeremy Toulalan, Joaquin, Martin Demichelis and Julio Baptista have all left Malaga in a bid to reduce their hefty wage bill.
Pawlowski helped Widzew Lodz avoid relegation from the Ekstraklasa last term, scoring four goals in 15 matches following a mid-season loan move from Jagiellonia Bialystok.
After moving to the Stadion Widzewa permanently in June for €50,000, Pawlowski is already back on the move.
He has represented Poland at both Under-19 and Under-21 level.
The 20-year-old will be presented to the Spanish club's supporters on Wednesday afternoon at their home stadium, La Rosaleda.
Malaga finished sixth in La Liga last term and reached the quarter-finals of the UEFA Champions League.
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