Bayern confirmed the Germany number one would undergo a medical and sign a five-year contract at the Allianz Arena when he returned from international duty next week.

No details of the fee were given by either club.

The 25-year-old said: "I am really looking forward to this huge and exciting challenge at Bayern.

"Many of my international team-mates will be my team-mates in Munich.

"Therefore I won't be going into a new environment and will certainly settle in quickly."

Neuer's switch to Bayern had been expected since April when he confirmed he would not extend his contract at Schalke.

The keeper's deal expired next summer and the Royals Blues could not risk the possibility of their captain and prized asset leaving on a free transfer.

He was linked with a move to Manchester United after his heroics in Schalke's Champions League semi-final first-leg defeat to the English champions, but he always maintained he wanted to remain in the Bundesliga and Bayern made no secret of their desire to sign him.

Bayern chief executive Karl-Heinz Rummenigge said: "Bayern are very happy in Manuel Neuer to have signed for the long term not only the Germany number one, but also one of the best goalkeepers in the world."

Bayern had little choice but to sign a keeper this summer, with 37-year-old Hans-Jorg Butt the only senior stopper on their books after they agreed to let Thomas Kraft join Hertha Berlin.

They could only finish third last term, crucially qualifying for the Champions League to salvage something from a disappointing campaign, but goalkeeper proved a problem position for them.

Former coach Louis van Gaal dropped Butt and made Kraft first choice midway through the season, but the youngster failed to impress and Butt won his place back when the Dutchman left the club.

New coach Jupp Heynckes will be looking for Neuer to help Bayern win the Bundesliga title back from Borussia Dortmund next season.

Neuer has been in the Schalke set-up for more than 20 years and been their number one ever since making his first-team debut in 2006. He made his farewell appearance in their DFB-Pokal final victory earlier this month.

Schalke general manager and board member Horst Heldt admitted the club had allowed Neuer to leave with a heavy heart.

"This was a difficult decision for all those involved, because in Manuel Neuer the club are losing an outstanding player in every respect," he said.

"But we have now finally decided to accept Bayern's offer, because given the circumstances it is the best solution for Schalke. We also promised Manuel we would honour his wish to be able to move on in the summer.

"Even though it will certainly hurt almost all Schalke supporters to the soul to lose such a role model, we should not forget the great things Manuel Neuer has achieved at the club.

"In sporting terms, he had a huge role in the success of the last five years, this season in winning the DFB-Pokal and in reaching the Champions League semi-finals for the first time."

Neuer is currently with the Germany squad ahead of their Euro 2012 qualifiers against Austria in Vienna on Friday and Azerbaijan in Baku on Tuesday.

He will be joined at Bayern next season by former team-mate Rafinha, the Brazilian right-back joining the Bavarians from Genoa.

The 25-year-old, who spent five years in Gelsenkirchen before moving to Serie A last year, has signed a three-year contract.

And Ralf Fahrmann will be Neuer's replacement at Schalke after he rejoined the club at which he started his career on a free transfer from Eintracht Frankfurt.

The 22-year-old has joined on a four-year contract.