Schalke have snapped up Roman Neustadter from Bundesliga rivals Borussia Monchengladbach, the club announced on Tuesday.
The 23-year-old has penned a four-year deal with his new employers.
The midfielder had been with Monchengladbach since 2009 but had informed the club that he would not be renewing his contract.
Monchengladbach have decided to cash in on his services as result, with Schalke snapping him up.
The Royal Blues currently sit third in the German top flight, three points adrift of leaders Bayern Munich.
Neustadter's departure represents another blow to Monchengladbach's future plans, with star playmaker Marco Reus already confirming that he will be off to Borussia Dortmund in the summer.