Borussia Dortmund have confirmed that Mahmoud Dahoud will join the club in the summer from Borussia Mönchengladbach as Thomas Tuchel’s side continue to recruit some of Europe’s most promising young players.

A number of clubs including Liverpool, Chelsea, Manchester City and Juventus had registered an interest in signing the midfielder, who has impressed for Gladbach this season despite their struggles in the Bundesliga. The 20-year-old had refused to sign a new contract, with his representatives making clear that he was interesting in leaving at the end of the season with only one year remaining on his deal.

However, Dortmund were always confident that he would choose them having held negotiations since the turn of the year and their sporting director, Michael Zorc, confirmed on Thursday that Dahoud will move to the Westfalenstadion on a five-year deal.

“Mo Dahoud is a highly talented and exciting player for the central midfield, who we have been watching intensively for several years,” he said. “He has already demonstrated that he can play at the top level.”

The fee for Dahoud, who was born in Syria, is understood to be in the region of £10.3m (€12m), with Gladbach also confirming the news on their website. “It was a very tough decision for Mo. It’s a shame that we’re losing a talent like him, but we have always managed to compensate for departures in the past,” said the sporting director, Max Eberl. “It was important for the player and the club that a decision was reached. Now it’s off our minds and we can move on.”

Dahoud was only 10 months old when his family fled the largely Kurdish town of Amuda on Syria’s northern border with Turkey. He was considered as a potential member of Joachim Löw’s Euro 2016 squad and has represented Germany at various youth levels.

The signing can be considered as something of a coup for Dortmund. In January, they beat Real Madrid to the Swedish teenager Alexander Isak and have also recruited Ousmane Dembélé from the French club Rennes and the Turkey winger Emre Mor from FC Nordsjaelland in the past 12 months.