Neither the Bavarians nor his current club have announced a deal, but the player's representative has revealed that his client will play football for die Roten in 2012-13
The Croatia striker, who scored three goals for his country at Euro 2012, has been closely linked with a transfer to the Bavarian giants in recent days, with Wolfsburg coach Felix Magath admitting on Tuesday that there is an "open race" for his signature.
And agent Ivan Cvjetkovic has revealed that a deal has been struck between the two clubs and that his client will move to Bayern.
"We are very glad that the transfer worked, this is the right step for Mario," Cvjetkovic told Sport1. "We have done everything right. After two years at Wolfsburg, this is the next logical step in Mario's career."
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Mandzukic scored 12 goals and contributed 10 assists for Magath's side last season, and found the net three times for Croatia in Poland and Ukraine.
He will follow Mitchell Weiser, Dante, Claudio Pizarro, Xherdan Shaqiri, and Tom Starke in moving to die Roten this summer.