The 29-year-old Olij has signed a four-year contract at PSV, who pay €3 million for the stopper.
Olij, who played every minute for Sparta in the Eredivisie last season and conceded the fourth-fewest goals with 43, is delighted by finally grabbing a big-time move to a top Eredivisie club.
"A dream has become reality," said Olij on the club website. "I have been looking forward to this day when I could put pen to paper."
"After Sparta-PSV, I was informed that the club was serious about pursuing this opportunity. Subsequently, I discussed with the coach what my role could be and the style of play. That gave me a positive feeling. We are starting from scratch, which is appropriate for a top club like PSV. It is my responsibility to demonstrate that I am a valuable addition to the team."
'Excellent option'
Along with confirming Olij as their newest addition, PSV confirmed Argentine goalkeeper Walter Benitez will leave the club upon the expiry of his contract this summer.
Football director Earnest Stewart praised his newest goalkeeper's playing style. "With Nick, we have an excellent option for the goalkeeper position. He is very strong in playing along with the team and fits in very well with the playing philosophy that we and our coach advocate."