A 40m euro (£34.2m) deal has been completed between the two parties.
According to a statement released by Porto on 17 June, the Gunners will pay an initial 35 million euros for the 22-year-old.
A long-term contract has been signed by the man.
Mikel Arteta said he was excited that the team had identified and signed a special talent.
He said thatFabio will bring high quality andVersatility to our attacking play.
The player of the tournament at the European Under-21 Championship was Vieira, who has yet to win a senior cap for Portugal.
He scored six goals and provided 14 assists as he helped Porto win the top-flight title in Portugal.
Fabio is a player with special qualities who is comfortable with the ball in the final third of the pitch.
We are looking forward to working with him and enjoying his contributions to the team.
We are looking forward to finishing the transfer window as quickly as possible.
There's more to come.
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