The Brazilian international had already agreed a deal to sign for Schalke when his contract expires in the summer of 2005.
But both clubs had been haggling over a deal to enable Bordon to play for Schalke next season.
Neither club have commented on the transfer fee but reports indicate Schalke have forked out ‚é¼5 million to land Bordon immediately.
Stuttgart admit they are reluctant to lose Bordon but concede it is a sensible piece of business given that the centre half would have been leaving for free.
"We're losing a very good player," said Stuttgart president Erwin Staudt.
"But considering the fact that Marcelo would be leaving us in a year anyhow, we're quite satisfied with the outcome of the negotiations."
