Perisic has struggled for playing time at Dortmund, so Wolfsburg were keen to swoop for his services.
The fee is reported to be in the region of 8 million euros, and is the first major signing by the club’s new sporting director Klaus Allofs.
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Since Guus Hiddink arrived at the helm, Chelsea have improved considerably after a tricky start to the campaign.
Newcastle United are staring down the barrel of relegation to the Championship for the second time in the past eight years.