The 25-year-old lanky Trinidad and Tobago international has signed a four-year contract and tops Stoke's previous record of six million pounds paid for defender Robert Huth from Middlesbrough.
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"Kenwyne is unplayable on his day which is why this is a fantastic signing for this football club," Stoke manager Tony Pulis told the club's website.
Jones, who moved to Southampton from Trinidad in 2004 before joining Sunderland in 2007 for six million pounds, could feature in Stoke's Premier League season opener at Wolverhampton Wanderers on Saturday.
"The fact that I know the manager, some of the players and the place so well has obviously been an influence upon me coming here," said Jones, who scored three times in a 13-game loan spell at Stoke in 2005.
"This is an exciting new chapter in my career and I want to do my best for a club that has clearly had great success since I was last here."
Jones scored 26 goals in 94 appearances in all competitions for Sunderland.
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