Shawcross has signed a three-and-a-half-year deal with the Potters.
Stoke will pay £1million up front and £750,000 based on appearances and £250,000 on the club’s success.
“I am absolutely delighted to have signed Ryan permanently,” Stoke boss Tony Pulis said.
“He has been fantastic for us this season and he will continue to get even better.
“Everyone has been working extremely hard behind the scenes to tie up the deal, and we have beaten off several other clubs to his signature which shows we are moving in the right direction.”
Chief executive Tony Scholes added: “He is a player with huge potential and we are delighted that we have been able to sign him on a permanent deal.
“The fact that we have been able to secure Ryan’s signature despite competition from other clubs demonstrates how far we have come as a club in the last 12 months.”
