The 31-year-old has been marginalised since the Qatari takeover, making just 25 appearances over the past two seasons in Ligue 1.
Tiene has previously been linked with a move to Fulham and expressed regret that he will not be plying his trade in the Premier League.
However, the defender said that he is happy to have joined La Pallaide.
"I am leaving PSG because they do not want me," Sky Sports News quotes him as saying. "It was a good experience to leave a team who won the league.
"Montpellier will be fantastic for me. I will have more opportunities there.
"Fulham has been linked with me, but never went in for me which they should have done. I have always wanted to play in the Premier League."
Tiene joined Les Parisiens from Valenciennes in 2010.