The versatile attacker will join the Fohlen in the summer transfer window after agreeing a four-year deal with his new club
The 25-year-old has signed a contract until the summer of 2017 with the Fohlen and will join his new club at the end of the 2012-13 campaign.
Gladbach were keen to add some more creativity to their squad ahead of next season and they see the versatile Kruse as the ideal signing.
"We're really happy that Max Kruse has decided to join us," sporting director Max Eberl was quoted as saying on the Gladbach website.
"He's a quick, versatile player with excellent technique, who's certainly going to give us more options up front."
Kruse has been in sublime form so far this term, netting nine goals in 28 Bundesliga appearances, while creating eight more.