The 31-year-old was left club-less after having his contract terminated by Bayonne in October.
But he will remain in France after penning a two-and-a-half year deal with the big-spending Parisians, who boast fellow Welsh internationals Jamie Roberts and Dan Lydiate.
“Racing Metro 92 welcome the signing of Wales international Mike Phillips,” read a statement on the club’s website.
“Racing have been in discussion with Phillips’ representatives for several months to recruit him for the 2014-15 season.
“Recent events that took place in Bayonne have only hastened his arrival in the Hauts-de-Seine.
“Phillips is committed for a period of two-and-a-half years. He will be at the club on Tuesday and can feature in the European Cup meeting with Harlequins in Nantes on Saturday.”
Phillips faces fierce competition with France international Maxime Machenaud for the number nine jersey at the Paris club.
He is eligible for the Heineken Cup but would not be available if Racing qualify for the quarter-finals of the Amlin Challenge Cup following his appearance in Bayonne’s previous clash with Grenoble.
“Great first day in Paris, can’t wait to start with my new club @RacingMetro92 tomorrow. Looking forward to the next 2.5 years!,” Phillips Tweeted yesterday.
Phillips started three of Wales’ four Dove Men Series matches and scored a try in a man-of-the-match performance against Argentina.
His signing was accompanied by more good news for Racing fans, with the club also announcing the beginning of construction on a new 32,000-seater stadium to be built in the Parisian suburb of Nanterre.
