Karl-Heinz Rummenigge believes the German is back in his rightful place and described it as "incredibly fun" to have the 21-year-old on their books
The Bavaria-born attacking midfielder was a product of the Dortmund youth academy but moved to the Allianz Arena this summer for €37 million (£31.5m).
Despite initially struggling for form and fitness, Gotze has shown flashes of his best form in wins over Mainz and Viktoria Plzen in the past week, and Rummenigge believes the 21-year-old is starting to find his feet again now he is back on home soil.
"Mario is a native of Memmingen. He was only briefly 'loaned' to BVB," he told reporters jokingly following Bayern's 5-0 Champions League win on Wednesday, during which Gotze scored and set up Bastian Schweinsteiger's goal.
"We are having incredible fun with him, because he has excellent qualities which go well with Bayern Munich."
Bayern take on Hertha Berlin on Saturday in their next Bundesliga clash.