Borussia Monchengladbach midfielder Roman Neustadter will join Schalke in the summer, his future club announced on their official website.
The 23-year-old confirmed his departure last week and was linked with a move to Bayer Leverkusen before ultimately choosing Schalke, where he has agreed to terms of a four-year contract until 2016.
"We are delighted that the transfer went well," Schalke sporting director Horst Heldt said. "Roman is young, German, a free transfer, who played consistently in the defensive midfield for the last year and a half.
"He does his job on the pitch with little fanfare, but is really good and has a strong passing game."
Neustadter is an ex-Germany Under-21 international, but was born in the Soviet Union and recently revealed exclusively to Goal.com that he would consider a call-up to the Ukraine national team.