Peats has been granted an early release from his contract with the South Sydney Rabbitohs to join the club next season.
Nathan Peats is a 2-time Indigenous All Star and this year made his debut in City Origin. He brings strong leadership qualities having captained the Rabbitohs NYC team to a Grand Final in 2010.
Pirtek Parramatta Eels Head Coach Ricky Stuart is confident the 22-year old can play a key role in restoring success at the club.
Nathan is a wonderful talent and will bring a real competitiveness to our squad next season," Stuart said.
"He will play a massive part in what we are building towards here at the Eels and his signature ensures our recruitment and retention plans remain on track and in a good position to secure long-term success at the club.
Peats has played 53 NRL games since making his first grade debut in 2011.
Interim CEO Matt Phelan believes Parramatta will enable the utility to reach his full potential as a footballer.
Nathan has achieved some great things in his 3 seasons in the NRL, representing the Indigenous Allstars, playing for City and playing in a final series which is a credit to him," Phelan said.
"We truly believe Parramatta can provide a great opportunity for him to further his career and are confident he will fit perfectly into the culture we are building here as a club.