The development means that there will be no Indian driver on the F1 grid this season since Narain Karthikeyan was also linked to this seat but missed out.
Karthikeyan raced for Hispania in the 2012 season but the Spanish team found it difficult to continue in the expensive sport and opted out, leaving the Indian without a job.
Sutil joins British teammate Paul di Resta to complete Force India's drivers line-up while Jules Bianchi will continue as reserve driver.
The 2013 campaign will be Adrian's fifth racing season for the side and sixth in Formula One.
The 30-year-old German will test for the team this week in Barcelona, driving on Friday and Saturday. Paul Di Resta will be back in the car on Sunday.
"The decision over our driver line-up has not been an easy one and we have given it great consideration over the last few months. It was a close call, but ultimately we felt that Adrian's experience and historic links to the team gave him the edge, and will provide us with the best possible chance of realising our ambitions for the coming season," Team Principal Vijay Mallya said.
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