The former Borussia Moenchengladbach man joins the club on July 1 with the Hammers reportedly beating off off competition from several top European outfits to land their man.
Nordtveit, 25, signs on a five-year deal and returns to London six years after leaving Arsenal to join Monchengladbach.
However, to have picked him up on such “sensible” wages is a coup for the Hammers who did a great job in selling the club to the player.
And it’s another indication of the club to ensure that they get true value for money with a source saying: “He’s a genuine utility player and to have picked him up on the sort of wages we are talking about was excellent business.
“He can play as a defensive midfielder which is his strongest position but is also capable of slotting in to the defence at right back or central defence.”