The former Arsenal player arrived at the Britannia Stadium on a temporary deal in the summer after an unsuccessful spell in Spain.
The Potters have now handed him a two-and-a-half-year deal having completed a deal for an initial £1.725million, which could eventually rise to £2.8million.
Manager Tony Pulis told Stoke`s official website: "This is fantastic news, just what we all wanted. Jermaine has made such a big impact since he has been with us and he has become a favourite with the supporters, so I know that everyone will be delighted that we have completed the signing.
"Natural wingers are hard to come by, but we have two of them with Jermaine on the right and Matty Etherington on the left, so that gives us a real threat down both flanks.
Pennant added: "I know I have only been here a few months, but it really does feel like I have been here for years. I am looking forward to the fact that I am here at Stoke for the long term."
Source: PA
Source: PA