The 27-year-old has agreed a five-year contract at the San Siro after four hugely successful years in Bavaria.
Pavard made 163 appearances and scored 12 goals, including the winner in the 2020 FIFA Club World Cup final against Mexican side Tigres during his Bayern Munich stay.
He departs the Allianz Arena with four Bundesliga titles, one Champions League, one UEFA Super Cup, one DFB-Pokal and three German Super Cups.
Bayern chief executive Jan-Christian Dreesen said: “We would like to thank Benjamin Pavard for four extremely successful years together.
“Not least in our historic year, he was a very important part of the team, especially as he was the match-winner in the final of the Club World Cup.
“We respect his desire for a new challenge and have therefore agreed on a move to Inter Milan. We wish him all the best and much success for his future in Serie A in Italy.”
"Inter are a winning club. I play football to win, that's why I decided to come to Inter," the 2018 World Cup winner said in his first interview with InterTV.
"I want to win the Scudetto in order to fix the second star on the Inter shirt. I live to win trophies, and this is important for the fans and for the whole club. I will do everything I can to win as many titles as possible. There are world famous players in the team who will help us achieve them."