Borussia Dortmund have confirmed that they will lose playmaker Mario Gotze to Bundesliga rivals Bayern Munich at the end of the season.

Reports in Germany emerged claiming that the league champions, who will be led by new boss Pep Guardiola next season, were poised to meet the £32m release clause in Gotze's contract in order to take him to the Allianz Arena in the summer.

It has since been confirmed by Dortmund, who will take on Real Madrid over two legs in the Champions League semi-final, that they are resigned to losing the 20-year-old.

The club announced the news via their official Facebook page, and chief executive Hans-Joachim Watzke described the German outfit as feeling "disappointed beyond all measure" to lose the playmaker.

Gotze was previously linked to Premier League giants Manchester United, Arsenal and Manchester City.