The 27-year-old, an 11-time Germany international, will join his new team-mates in time for the 2015/16 season after penning a contract valid until 30 June 2019.
'The kind of striker we've been lacking'
"I've had two fantastic years at Borussia and the time spent here has been an important stage in my career," Kruse said in a statement on Gladbach's official website. "Of course I'll still do everything I can in the final two games of the season to ensure we finish the campaign as successfully as possible."
Wolfsburg sporting director Klaus Allofs confirmed the transfer following the Wolves' 3-1 victory away to SC Paderborn 07 on Sunday afternoon. "We're delighted Max has decided to join Wolfsburg," said the 58-year-old. "He's the kind of striker our squad's been lacking and he'll further improve our attacking quality and variability."
The club were swift to offer Kruse a welcome message via Twitter too: