The 30-year-old was forced to look for another drive after his previous team Force India named Nico Hulkenberg and Sergio Perez as their drivers for next season.
"After six seasons with Force India and many great moments, it was time for me to embark on a new challenge," said Sutil in a statement released by Sauber.
Sutil's arrival was made possible by compatriot Hulkenberg's defection to Force India, to be partnered by Mexican Perez, who arrived from McLaren.
Sutil's partner next season has not yet been announced but young Mexican Esteban Gutierrez, who raced for the team in 2013, could keep his seat.
After spells in various other racing series, Sutil joined the then Midland F1 team as a test driver in 2006.
The next year he became a Grand Prix racer for the Spyker F1 team, which had bought out Midland.
A year later the team was again sold and renamed Force India, but Sutil's entire F1 career has essentially been with the same outfit.
Earlier on Friday his manager Manfred Zimmermann had revealed that Sutil's future in the sport had been secured for next season, although without disclosing his destination.
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