Arsenal have confirmed Sead Kolasinac will join the club in the summer on a Bosman free transfer, their first capture of the transfer window.
The Gunners have announced he will sign a five-year contract and "subject to the completion of all regulatory processes, the defender will start pre-season training in July".
Kolasinac said: "It feels really good and I'm pleased to be here. Arsenal has a huge tradition and I followed the club as a young boy, in the days of Jens Lehmann and Thierry Henry."
Everton, Manchester City and Milan also made offers to Kolasinac, but the defender chose a move to north London despite uncertainty over Arsene Wenger's future as manager, which has now been settled.
Arsenal currently have two senior left-backs in their squad - Nacho Monreal and Kieran Gibbs, with the latter approaching the final year of his contract.
AC Milan's new Chinese owners were also keen to sign Kolasinac, who made 31 appearances for Schalke last season, but Sky in Italy believed he would sign for Arsenal.
He has represented Germany at youth level, but decided in 2013 to play for Bosnia and Herzegovina, the country where his parents were born, and has a total of 17 caps.