The 23-year-old said he is relishing helping the Bluebirds’ Championship campaign and looks set to make his debut at Preston on Sunday.
City beat off the challenge of several rival clubs including Swansea City, Derbuy – where Wilson had a spell on loan – and Nottingham Forest.
“I’m looking forward to getting started here,” said the 19-times capped flier, well used to the Cardiff City Stadium from his duties with Wales.
“We had a few clubs enquire about me but as soon as I heard Cardiff were interested it was a place I wanted to come.
“The Welsh connection was a massive part for me. When I come here, I feel at home. I think the team and facilities we have, everything is built for a Premier League team.
“I’m determined to come here and do my best to help the Club get there.
Wrexham-born Wilson had been close to a permanent move to Burnley earlier this month, but nothing happened before the deadline date cut-off for transfers between Premier League clubs.
Wilson is keen for game-time before next summer’s delayed Euro 2020 Championships as he fights for a place in Ryan Giggs’ side.
He will link up with fellow Wales international Kieffer Moore with City hoping Wilson can set-up plenty of goal scoring opportunities for the striker.
Wilson spent last season on loan at Bournemouth but his seven goals could not stop them being relegated having also had a spell with Derby in the Championship.
The Bluebirds have also signed keeper Dillon Phillips on a three year deal from Charlton.
The 25-year-old shot-stopper, who has been with the Addicks since he was eight, made 46 Championship appearances for the club last season.
“I’m coming in to compete with the other two goalkeepers and I’m looking forward to the challenge,” said Phillips.
“It’s exciting for me. It’s a big step and I’m looking forward to cracking on.”
But defender Dion Sanderson will not be returning for another loan spell from Wolves despite speculation he would return.
Sanderson, instead, has joined League One Sunderland on loan.
Centre-back Aden Flint, meanwhile, has joined Sheffield Wednesday on a season-long loan.