Schalke sporting director Christian Heidel has confirmed Leon Goretzka will join Bayern Munich in the summer after signing a contract with the German giants.
The Germany international's contract with Schalke was due to expire later this year and Bayern and Liverpool had been touted as potential destinations if he decided to leave the Veltins-Arena.
However, Bayern have won the race and Goretzka will now link up with Bundesliga giants Bayern in the summer, with the club confirming his arrival with a photo on Twitter.
Heidel said via the club's Twitter: "We were very sorry to hear this. Karl-Heinz Rummenigge told us yesterday that Leon has completed a medical. We are losing a very very good player.
"He has signed a contract with Bayern as of 07/01/2018. We've done everything we can to keep Leon at Schalke. In the summer there was an agreement with him and his advisor.
"We can deal with this situation, it did not come as a surprise. We are prepared for it."