Wolfsburg have announced they have secured the services of Luiz Gustavo from Bayern Munich for an undisclosed fee, beating Arsenal to the signature of the Brazil international.
The 26-year-old has signed a five-year deal with the 2008-09 Bundesliga champions and will be officially presented later on Friday.
Gustavo was keen to leave Bayern after he was deemed surplus to requirements by head coach Pep Guardiola following the arrival of Thiago Alcantara from Barcelona earlier this transfer window.
He had also caught the attention of Arsenal and the Premier League giants had a €20 million offer accepted for Gustavo, however, the midfielder has decided to stay in the Bundesliga.
Gustavo had joined Bayern from Hoffenheim in January 2011, making over 60 Bundesliga appearances for the Allianz Arena side, where he also won the treble in 2012-13.
The Brazilian midfielder joins compatriots Naldo, Diego and Felipe Lopes at Wolfsburg.