The 24-year-old, currently on loan to Fulham from QPR, has landed in the city and expressed his excitement at playing for new Milan coach Clarence Seedorf.
"I am honoured to be able to play in the best club in the world," he told Milan Channel.
"Seedorf and I talked. We were both happy.
"I like to play behind the strikers. I do not know (striker Mario) Balotelli personally, but I know who he is and I am pleased to be able to play with him."
Taarabt began his career at Lens before moving to Premier League side Tottenham in 2007.
After impressing on loan at QPR, he made a permanent switch to Loftus Road in 2010, but then joined Fulham temporarily in the close-season.
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