The Argentine international will join the Spanish team for two seasons for 2.5 million euros ($2.7 million), officials close to the deal told EFE.
Mercado told journalists at the airport that the move to Sevilla "is a great challenge" for him and he "feels ready."
The defender, born in the Argentine southern province of Chubut, started at Racing and then moved to Estudiantes in 2010, while he joined River Plate two years later.
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