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Mats Hummels is to join Bayern Munich from Bundesliga rivals Borussia Dortmund.
Barcelona, Manchester United and Liverpool were all reported to be interested in signing the centre-back but he will move to the Allianz Arena ahead of the 2016-17 season, signing a five-year deal with the German champions.
Hummels came through the ranks at Bayern before leaving to join Dortmund in 2008 and last month the club announced that their skipper had expressed a desire to return to his boyhood club. He wil re-join them on July 1, subject to a medical.
"I have not made this decision easily after eight-and-a-half successful years at BVB," Hummels told Dortmund's official website.
"I was always proud and still am, to wear the BVB jersey and to be part of this exceptional team. Before I return to my hometown in the summer, we have a large, common goal all: once again to bring the DFB-Pokal to Dortmund.
"For that I will give everything just like my team-mates. I wholeheartedly thank my team-mates, all the staff and fans for this long and wonderful time in Black and Yellow."
Hummels will be joined at the club by Benfica midfielder Renato Sanches.
The 18-year-old came close to joining Manchester United during the winter transfer window but the deal was not done in time and the Premier League side had been expected to make a move for him in the summer.
Bayern have beaten them to his signature, however, with Sanches agreeing a five-year deal with the club following his €35million move from Benfica.
"Bayern has been watching Sanches for a long period,” chairman Karl-Heinz Rummenigge said on the club's official website.
“We’re pleased we’ve been able to sign him despite big-name international competition. Renato is dynamic, a good tackler and a technically-skilled midfielder who’ll add even more strength to our team."