“It’s always been an ambition of mine to play in England and I just can’t wait to get started.”
Diakite is the first signing of the summer for Baggies head coach Carlos Corberan, whose side lost to Southampton in the Championship play-offs.
Seven players, including winger Matt Phillips, were subsequently released.
Corberan added: “Ousmane is a young, talented midfielder with the potential to continue his growth as a player in England.
“His personality on the ball will help us transition from defence to attack.”