The former Tottenham midfielder joins Sporting in a €7.7m deal - plus €500,000 in bonuses.
Edwards has signed a contract with Sporting to 2024.
The former England U21 international, 23, joined Vitoria in 2019 and has established himself as one of the most exciting attacking talents in Portugal.
In the 96 games played for Vitoria, the winger scored 20 goals.
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