The 25-year-old has joined on a long-term contract for a fee undisclosed by the club, but Sky Sportsunderstands the figure to be in the region of £35million.
Sanchez, who starred as Chile reached the last-16 of the World Cup, said: "I'm so happy to be joining Arsenal - a club with a great manager, a fantastic squad of players, huge support around the world and a great stadium in London."
Considered one of the most exciting attacking players in world football, Sanchez made over 100 appearances in all competitions for Barcelona after a 2011 move from Udinese, scoring 43 goals in three seasons with the Catalonians.
But despite his contribution to their 2013 La Liga and 2012 Copa del Rey triumphs, among a number of other domestic trophies, Barcelona believed he was no longer required at Camp Nou beyond this summer.
Sanchez was courted by a number of clubs across Europe, with Juventus and Liverpool showing the strongest interest alongside Arsenal, but the player made his desire to move to north London clear to his representatives.
"Alexis will add power, creativity and much quality to our squad."
Arsene Wenger
Sky sources learned he had arrived at Arsenal's London Colney training complex to undergo a medical on Thursday and upon completing the deal, manager Arsene Wenger said: "Alexis will add power, creativity and much quality to our squad.
"He has consistently produced top-quality performances at the highest level and we are all excited to see him integrate into the Arsenal squad."
Barcelona, meanwhile, said: "We thank Alexis Sanchez for his professionalism and dedication and wish him all the best for the future."
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