Twenty-five-year-old M'Vila is the fifth summer signing by manager Dick Advocaat and is available to face Leicester this weekend.
"I'm very happy to be a Sunderland player
I had a very good feeling training with the team," M'Vila said on the club website.
"Every player welcomed me and the feeling was very good with them so I'm excited for the start of the season.
"I've also wanted to play in the Barclays Premier League for a long time so I'm very happy to be here."
Sunderland have the option to sign M'Vila permanently at the end of the loan agreement.
M'Vila has been capped 22 times by France and spent last season on loan with Inter Milan, having started his career with Rennes.
He follows Jeremain Lens, Younes Kaboul, Sebastian Coates and Adam Matthews into the Stadium of Light.
Source : PA
Source: PA