The 30-year-old left-sided player had not seen eye-to-eye with club management over a series of issues this season and was banished from the first-team squad by former coach Hans Meyer last week.
Munch agreed compensation with Gladbach for his current contract, which is valid until 2004, and the club officially announced the news of his departure at a press-conference to present new coach Ewald Lienen on Sunday.
First reports claim that Bundesliga rivals Bochum could be interested in signing Munch, who arrived at the Bokelberg Stadium from Besiktas in 2001.
