The Spanish club activated a buy-out clause from Alves' former club Bahia, initially signing him until 2008 with a one-year option.
"Everything has been agreed and it's only a question of signing the contract," Alves said. "I'm very happy."
My dream is to continue at Sevilla for many years, we will see in the future if both the club and I benefit from this agreement."
The 21-year-old right-back arrived that the Andalucian after winning the World Under-20 World Championship with Brazil.
Alves was named the third best player in that tournament and Sevilla beat off a host of clubs, including Juventus and Real Madrid, to sign the young defender.
