Bakar, 24, who was out of contract at relegated Nancy, hopes to build on his eye-catching performances after scoring five times in 35 Ligue 1 appearances last season.
"There were other top-flight teams who were interested, but Montpellier had a number of arguments," Bakar told ligue1.com.
"They're a club set up to grow, to play at the top end of the table, with very passionate people behind them.
"The fact they had been following me from the first half of the season also influenced my choice. That shows that they really count on me. To my mind, it's the right club for me to improve."