Musiala has broken into the Bayern Munich senior side this season and has made 25 appearances in all competitions, scoring four goals.
The 17-year-old, who is set to sign his first professional contract with the Bavarians in the coming days, scored his first Champions League goal in Bayern Munich’s 4-1 win over Lazio in the round of 16 first leg on Tuesday.
Musiala was born in Germany to a German mother and a British-Nigerian father, and moved to England aged seven. He spent time in the Chelsea academy before joining Bayern Munich in 2019.
"I've thought about this question a lot," he told The Athletic. "What is best for my future? Where do I have more chances to play?
"In the end, I just listened to the feeling that over a long period of time kept telling me that it was the right decision to play for Germany, the land I was born in.
"Still, it wasn't an easy decision for me. England is home for me. It is difficult to find words for what England means for me because I have so many memories connected to very positive emotions.
"I have a heart for Germany and a heart for England. Both hearts will keep on beating."
Germany manager Joachim Low is expected to hand Musiala his first call up to the national team next month.