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.

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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.