The 23-year-old has agreed a four-year deal at the Allianz Arena and will join the club on July 1 from fellow Bundesliga side Eintracht Frankfurt
The midfielder, who is out of contract this summer, has long been expected to join the Bundesliga champions, with Frankfurt sporting director Bruno Hubner stating in January that the move was set to be completed.
Bayern have now confirmed that the 23-year-old will join the club on July 1 this summer after agreeing to terms at the Allianz Arena.
"I'm very pleased that this transfer has worked out," he told Bayern's official website.
"Bayern is the next big step for me. I want to develop here and win a load of titles with my future team-mates."
"Sebastian Rode is an excellent professional, he embodies the highest level of professionalism and dynamism," added sporting director Matthias Sammer.
"I'm certain he will give our team plenty of momentum and enthusiasm to tackle obstacles in the future."
Rode, who joined Frankfurt from Kickers Offenbach for a €300,000 fee in the summer of 2010, has made 28 appearances in the Bundesliga, DFB-Pokal and Europa League for Armin Veh's side this season.