The Germany U21 international had been heavily linked with a move to the Premier League for 2017-18, but he will be remaining in the Bundesliga
Mahmoud Dahoud has agreed a deal to join Borussia Dortmund at the end of the season for an undisclosed fee.
The Germany youth international has signed a contract that will keep him at Signal Iduna Park until June 2022, with reports that circulated in 2016 suggesting that he had a €10 million release clause at Borussia Monchengladbach if purchased this summer.
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"Mo Dahoud is a hugely talented and exciting player for central midfield and one we have been watching intensively for several years," Dortmund sporting director Michael Zorc told the club's official website .
"He has already shown he can play at the top level."
The highly rated 21-year-old midfielder, who can also play in a forward role, had reportedly been the subject of a transfer tug-of-war between Dortmund and Liverpool in recent days - although Goal revealed on Wednesday that the Reds were out of the running .
A report in Germany had claimed that Jurgen Klopp sanctioned an offer of €25million in an effort to secure Dahoud's signature, but a meeting with Dortmund boss Thomas Tuchel convinced the player not to move to the Premier League.
Gladbach sporting director Max Eberl said of the deal: "It was important for the player and the club that a decision was reached. Now it's off our minds and we can move on.
"We will reinvest the money we get for Dahoud and try to find a good replacement for him."
Dahoud has made 32 appearances in all competitions this season, including four in the Champions League group stage
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