The move by the Filipino legend has fueled speculation on the chances of a showdown between the pair. Should the two superstars meet, it would be in association with Floyd Mayweather's Mayweather Promotions.
Paradigm confirmed the deal to send social media fans into frenzy. They said: "We're very excited to announce that Manny Pacquiao has signed with PSM for full-service representation!
"Manny is one of the greatest boxers of all time. We look forward to working with Arnold, Ping (Pacquiao representatives) and the rest of the team back in Manila to maximize his historic career."
McGregor, fresh off his stunning 42-second win over Donald 'Cowboy' Cerrone, congratulated the newest addition to the team. "Welcome to the team Emmanuel!," he tweeted.
Pacquiao, 40, is in the twilight years of his career and had his most impressive year in recent times in 2019 with victories over Adrien Broner and Keith Thurman. Towards the back-end of last year, 'Money' Mayweather teased fans with a promise to make a huge announcement alongside Dana White. It now appears there's a good chance he'll be involved on the promoting front for a battle between McGregor and Pacquiao.
The crossover bout would present a huge opportunity to cash-in further for both men with a potential Mayweather clash on the line. When the American fought McGregor in 2017, the pair did nearly four million PPV buys - the second most lucrative fight in boxing history, behind Mayweather versus Pacquiao.
A stadium fight in the making?
The Oakland Raiders will become the Las Vegas Raiders in the 2020 NFL season as they prepare for life in the desert. The Las Vegas Allegiant Stadium is a contender to be the venue for the blockbuster if it gets confirmed.
With a potential 72,000 in attendance for the fight alongside an estimated 3 million PPV buys, there'll be 100 million reasons as to why McGregor would want Pacquiao to sign on the dotted line.
Prior to his most recent battle in the Octagon, McGregor spoke about the prospect of facing Pacquiao.
"The Manny Pacquiao talks have been ongoing. An aspiration of mine now is to win a boxing world title.
"I think that would be a phenomenal feather in the cap and something I look to achieve in the future. And something I will achieve."