Kruse has scored nine goals this season including two against Gladbach on March 30.
"We are delighted Max Kruse has decided to join us," said sports director Max Eberl on Thursday. "He is fast, skilful and can be used in a number of positions to strengthen our front line."
Gladbach are still in the running for a Europa League spot, occupying seventh place in the Bundesliga with six matches left this season.
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