The 31-year-old striker has moved for an undisclosed fee and will be reunited with Martin Jol, who managed Tottenham during the Bulgarian’s time at the north London club.
Berbatov, who scored 56 goals and made 149 appearances for Manchester United, told Fulham’s official website: "I’m delighted to have signed for Fulham and I look forward to playing under Martin Jol once again.
"As soon as I was aware of Fulham’s interest my decision to join was an easy one to make.
"I’m impressed with the set-up here and the people have made me feel welcome. There is a close and personal feel around the club and I can’t wait to get started."
Jol said: "Dimitar is a player I’ve always admired. He did well for me at Spurs and I’m sure that he will do well here at Fulham.
"He’s a player of great quality and technical ability who will give me the attacking option I’ve been looking for.
"When he’s not scoring goals, his ingenuity often leads to chances being created for his team-mates and I’m delighted that we’ve been able to convince him to come to us, as there was a lot of attention from other clubs."
Berbatov joined Spurs from Bayer Leverkusen in 2006 and went on to make 102 appearances and score 46 goals in all competitions for the White Hart Lane based club.
He then made the switch to Manchester United for a reported £30 million and in the 2010/11 season he was the Premier League’s joint top goalscorer to claim the Golden Boot with Carlos Tevez.
The new deal will see Berbatov, who retired from international football two years ago, remain at Fulham until at least the summer of 2014.