After a difficult start to the season, Dortmund parted company with manager Lucien Favre in December and replaced him on an interim basis until the end of the season with Edin Terzic.
However, Terzic has done little to convince the Dortmund hierarchy that he is up for the job full time, with Dortmund boasting just one win in their last five Bundesliga games and dropping to sixth on the table.
Rose joined Monchengladbach from Austrian side RB Salzburg in the summer of 2019 and guided the club to a top four finish before helping them to reach the knockout stages of the Champions League for the first time in their history this season. They will face Manchester City next week in the round of 16 first leg.
Rose’s contract with Monchengladbach would have expired at the end of next season but a release clause in his deal that allows him to leave this summer has been activated by Dortmund.
A brief Gladbach statement read: "Marco Rose has opted to leave Gladbach at the end of the season and join Borussia Dortmund."
Gladbach sporting director Max Eberl added: "We have had many discussions with each other in the past few weeks about Marco's future.
"Unfortunately, he has now decided that he would like to make use of a clause in his contract, which runs until June 2022, and switch to Borussia Dortmund in the summer.
"If the conditions stipulated in his contract are met on time, he will no longer be available to us after the end of the season.
"Until then we will mobilise all our strengths together with Marco to achieve our goals in the Bundesliga, the DFB-Pokal and the Champions League."
