The winger has signed for the Latics in a three-year deal.
Rankine was on loan at Wigan's League One rivals Exeter City last season, where he made 36 appearances in all competitions.
I'm so excited to be here," Rankine told Wigan's website.
"It's been in the works for a while, so I'm really excited to be here and get the deal done - I can't wait to get out there in front of the fans now.
"It's the right step for my career. I feel like I've got a really good opportunity to progress and develop, and I just want to play the best football that I can here."
Manager, Shaun Maloney said: "I'm very pleased that we have managed to sign Dion on a permanent deal. He has all the attributes that we are looking for in a wide forward, as well as the determination to enjoy a successful season.
"Dion can play on both sides and will bring speed and 1v1 ability to our attacking play, as well as having a brilliant mentality when we don’t have the ball.”
Sporting director, Gregor Rioch added: "Dion is another fantastic addition to our Football Club. He gained experience in League One last season with Exeter City, where he enjoyed a very successful season, racking up 36 appearances, which puts him in a fantastic position to hit the ground running for Shaun and the team this season.
"I'm sure supporters will enjoy watching Dion in action, and we look forward to seeing him on the pitch in Blue & White."