Borda joins Western Sydney after helping Alaves secure promotion to this season's La Liga, having topped Spain's second division, the Segunda, in 2015-2016.
But instead of playing against the likes of Cristiano Ronaldo and Lionel Messi this year, Borda, whose career has spanned across both Asia and Europe, said he is excited to be joining the Wanderers.
"I am super excited to join the Wanderers for the next two seasons," Borda said.
"This will be a new adventure for me and I'm sure I will enjoy it.
"I am coming to give my best for the team and help them with the Championship."
The 31-year-old comes to the Wanderers as a direct replacement for departed countryman Alberto Aguilar.
Borda's previous clubs include Real Sociedad B, Bilbao Athletic, APOEL, Muangthong United and Rapid Bucuresti, along with more recently, Alaves, who he made 10 appearances for.
