The promising attacker will continue his career in Germany, having inked a long-term deal with the ambitious Bundesliga side.
The Rein Neckar Arena side was keen to add some more depth to the attack ahead of the new season, and head coach Markus Babbel has now grabbed the reinforcements he was after.
"Joselu has already shown his class at Real Madrid. But he's still young as well and has a lot of potential. He fits in perfectly in this team and at Hoffenheim," Babbel commented on the arrival of the 22-year-old.
The attacker is a product of the Celta Vigo youth academy, but joined Madrid in the summer of 2009. He made his official first team debut with the Liga champion in May 2011, when he scored once in the win over Almeria.
Joselu netted an impressive 26 goals for Real Madrid Castilla last term, helping the team win promotion to the Segunda Division.
Follow GOAL.COM USA on