Wolfsburg look set to end weeks of speculation by completing the signing of Diego from Juventus on Friday.
The German club have agreed a deal estimated to be worth around 15million euros for the Brazilian midfielder and he will sign a four-year contract for Steve McClaren's side.
The 25-year-old left Bundesliga rivals Werder Bremen for the Italian giants a year ago, but despite being regarded as one of the finest players in the German league, he failed to settle in Italy following a 25million euros move.
It cost him his potential place in Brazil's World Cup squad this summer after scoring just five goals in 33 games, with the arrival of Liverpool midfielder Alberto Aquilani effectively hastening his departure.
The player passed a medical at Wolfsburg on Wednesday and could make his debut against Mainz on Saturday.
"We have signed the transfer agreement with Juventus. This evening we expect Diego's father (his agent) to sign the deal in Wolfsburg," said the club's general manager Dieter Hoeness.