The 25-year-old Burnley midfielder will move to the DW Stadium on July 1, having previously played for Coyle when he was the Clarets boss.
"I'm delighted to bring a player of Chris's ability to the club, and he'll bring real strength to the group ahead of a demanding season," the manager said, according to Sky Sports News.
"He's a powerful, attacking midfielder who scores goals, plays from box-to-box and isn't scared to put his foot in when it comes to winning the ball back.
"I had the pleasure of working with him at Burnley, and on a number of occasions we turned down some big-money bids for him, such was his importance to the team and the integral role he played in helping the club win promotion to the Premier League at a young age."
McCann had also been linked to Nottingham Forest, Hull City and Leicester City.