The 28-year-old told the News of the World: "It was now or never. It's something I've always wanted to do, and I didn't want to make this sort of move as an afterthought at the end of my career. I wanted to go while I'm still playing well.
"It isn't about money. The deal is similar to the one I had at Harlequins. The lifestyle appeals just as much.
"Part of me wanted to stay and, in many ways, that might have been easier.
"But I'll always be a Quin. If I'm playing well when this contract ends in 2006 and Quins want me, I could come back."
Luger's injury-ravaged career has seen two spells at Quins, with a stint at Saracens sandwiched in between, but the 2001 Lions tourist could have won considerably more than his 32 England caps had it not been for a string of injuries.
He joins a Perpignan side with ambitious plans, having already announced the arrival of Wallaby centre Daniel Herbert, with All Black back rower Scott Robertson also expected to follow.
Ireland lock Mick O'Driscoll, Leicester prop Perry Freshwater and Narbonne lock Colin Gaston have also been confirmed in the squad for next season at the Stade Aime Giral.