The 24-year-old is one of Asia’s biggest stars nad has previously been linked with Manchester City and Sunderland.
“He is a young and very talented player who has a lot of experience for his age,” Twente coach Steve McClaren told news agency ANP.
Akram has impressed for Iraq’s national team in recent years.
Akram added: “This is a dream come true, to play in Europe. FC Twente is a good club with a big coach.
“I want to develop further at FC Twente and grow together with the club.”