The 29-year-old spent four months with The Hammers on loan last season, but is now at Upton Park permanently after joining for an undisclosed fee.
Kovac, who made nine appearances under Gianfranco Zola last term, has signed a three-year contract with the East Londoners.
It remains to be seen whether he features for West Ham in their season-opener at Wolverhampton Wanderers this weekend as the club await his international clearance.
"I wanted a permanent move, not just a loan," he said. "A loan would resolve nothing at my age.
"It's good that I have experience with West Ham. I must say I'm very happy to be at a club where both the manager and the owner want me."
West Ham finished ninth in the table last season and Kovac believes another top-ten finish this time around would be deemed a good campaign.
"Anywhere above 10th place would be good," he continued. "I think the club would be content with such a result."
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