The Spain international centre-back and two-time Europa League winner has completed his transfer to Lucien Favre's side having put pen to paper on a five-year deal with the Foals
After the clubs reached an agreement for an undisclosed transfer fee, the 23-year-old signed a five-year contract that will run until 2017. Gladbach sporting director Max Eberl hailed the capture of the twice capped Spain international, who will replace Dante in the starting XI at centre-back.
"Alvaro Dominguez was our preferred candidate for the position of left central defender, where we have been looking for a new man after the sale of Dante to Bayern Munich," Eberl said on his club's official website.
"He was a regular player at Atletico Madrid, won the Europa League in 2010 and 2012 and recently made the leap into the Spanish national team. We are proud that he chose Borussia."
A versatile player, Dominguez can occupy the left-back position in addition to the interior of defence. He is Gladbach's third signing of the summer, following Granit Xhaka and Peniel Mlapa.