Marco Rose will coach Borussia Dortmund from the start of the 2021/22 season.
The news has been confirmed by Rose’s current club Borussia Mönchengladbach on Monday.
“We’ve held many talks on Marco’s future over the past few weeks,” Gladbach sporting director Max Eberl said.
“He has unfortunately decided to use the clause in his contract and would like to move to Borussia Dortmund in the summer.”
Rose will remain at Gladbach until the end of the season. The German has been the the favourite to take the Dortmund job on a permanent basis since Lucien Favre was sacked in December.
Dortmund will pay €5m to release him from his contract at Borussia Park.
Edin Terzić is in place as interim but the Schwarzgelben have won just one of their last six Bundesliga matches, slipping to sixth in the league. They are currently above Rose’s Gladbach side on goal difference.
Both clubs are still in the Champions League and will meet each other in the DFB Pokal quarter-finals in March.