Champions League semi-finalists Borussia Dortmund confirmed on Tuesday that Germany star Mario Goetze will join Bundesliga rivals Bayern Munich next season, in a deal reported to be worth 37 million euros ($48.2 million, £32 million).
The talented 20-year-old attacking midfielder was under contract at Dortmund until 2016 but a release clause allows him to leave for 37 million euros, according to German daily Bild.
Dortmund confirmed that Goetze's agent, Volker Struth, had recently informed them that Goetze would be using the clause and will move to Bayern on July 1 -- the first day ex-Barcelona manager Pep Guardiola takes charge as Munich coach.
The transfer makes him the biggest transfer deal within Germany, passing the previous highest mark of 35 million euros which Bayern paid VfB Stuttgart for Mario Gomez in 2009.
The 40 million euros Bayern paid Athletic Bilbao last year for Javi Martinez is the Bundesliga's current record transfer.
According to the Ruhr Valley newspaper, Ruhr Nachrichten, Goetze will be paid 12 million euros a year at Bayern.
Goetze is the first addition to Bayern's squad for next season, while Barcelona, Manchester City and Arsenal had all reportedly been interested in the young German.
"We are of course exceedingly disappointed but must stress that both Mario and his advisers have behaved with absolutely conformity within the contract," said Dortmund chief executive Hans-Joachim Watzke.
"In my opinion, Bayern have followed the same policy for many years of weakening their competitiors.
"We expect more attacks from Munich and will try to fight back.
"Our players must decide for themselves which club gives them the best package."
The timing of the deal does little to help Dortmund, who host Real Madrid in the Champions League semi-final, first leg on Wednesday, but will boost Bayern, who are home to Barcelona on Tuesday in the other last-four clash.
Dortmund coach Jurgen Klopp and director of sport Michael Zorc have asked Borussia fans to support Goetze in his last four league games for the club he joined as an eight-year-old in 2001 and especially in the Champions League tie.
"I've known about this for some time, he has not decided against a team-mate or the club but for Pep Guardiola," said Klopp.
"He wanted to take the chance to work with this exceptional coach.
"We wanted to keep him but without the clause Mario wouldn't have signed a contract extension. Now the news is out we have to deal with the consequences.
"We have to show that Borussia Dortmund is above all this."
Goetze is one of the rising stars of the Germany team, having made his debut as an 18-year-old in October 2010 and scored his first goal in an outstanding display on his first start in the 3-2 friendly win over Brazil in August 2011.
While his addition to the star-studded Bayern squad is sure to boost the Bavarian giants, Dortmund fans have already vented their anger and frustration on Goetze's Facebook page with "traitor" being one of the kinder comments.
Dortmund also revealed they had no contact from Bayern in the matter, but as Klopp pointed out, Dortmund benefited from a similar situation when midfielder Marco Reus joined them from Moenchengladbach last year.
"Last year we signed Marco Reus for a fixed sum of 17 million euros (US$22.1m) and that wasn't greeted with much enthusiasm in Moenchengladbach," he said.
Having won the German league title for the last two seasons, Dortmund have missed out to Bayern this season. Munich won the Bundesliga a fortnight ago with six games to spare and a 20-point lead.