The 22-year-old has today signed a three-and-a-half year deal at the Stadium of Light after completing a medical and agreeing personal terms.
He is Martin O'Neill's first signing of the January transfer window.
New face: Alfred N'Diaye has joined Sunderland for £3m from Turkish side Bursaspor
N'Diaye started his career with Nancy fouryears ago and moved to Turkey at the start of last season after more than 60 appearances in the French top division.
O'Neill, who is desperate for midfield cover for injured captain Lee Cattermole, launched a bid for the ball-winning midfielder at the opening of the transfer window.
Powerhouse: N'Diaye (left) passed a medical on Wearside today and could make his debut against West Ham this weekend
He told his club's website: 'Alfred is a strong, powerful young player and as suchcan offer us more strength in depth.
'He will give us options and I'm delighted that we have been able to bring him to the club.'
N'Diaye could go straight into the squad for Saturday's home game with West Hamif he receives international clearance in time.
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