Eight-time German champions Borussia Dortmund have signed Germany U21 international Mahmoud "Mo" Dahoud from Bundesliga rivals Borussia Mönchengladbach ahead of the 2017/18 season.

The 21-year-old, who came through the ranks at Mönchengladbach and has made 52 Bundesliga appearances (six goals) as well as 17 UEFA Champions League/UEFA Europa League appearances (one goal), had been coveted by a number of Europe's top clubs but opted to join BVB, signing a contract that will keep him at Signal Iduna Park until 30 June 2022.

"Mo Dahoud is a highly-talented and exciting central midfield player who we have been keeping very close tabs on for several years now. He has already proven that he can cut it at the highest level," said Borussia Dortmund's Sporting Director Michael Zorc.

Both clubs have agreed not to disclose the terms of the transfer.