The 20-year-old striker joins up with the Owls from Italian side Sampdoria having made his Serie A debut in January of this year.
With opportunities limited at the Stadio Luigi Ferraris, Savic is looking forward to gaining some valuable experience at his new club.
"I am very happy to come to Sheffield Wednesday, this is a very big club and a very big opportunity for me," he told the club's official website.
"I am a big admirer of English football, it is very different from over in Italy, it is much more physical but I like it here.
"I am really looking forward to getting started. I am enjoying the training, there are some very good players here, good coaches and a good manager and I want to show everyone what I can do."