His contribution of six league goals from midfield caught the eye of Borussia's sporting director Max Eberl enough to prompt a switch, which will be completed on July 1.
"Vincenzo Grifo has developed in a really interesting way in the last couple of years in Freiburg," said Eberl.
"He played a key role in their outstanding season and will make us much more flexible going forward next season. We're really pleased to be able to bring him to Gladbach."
Grifo has signed a four year deal at the Borussia-Park, keeping him at the club until 2021.