The 24-year-old has signed a contract that will keep him with the Bundesliga side until the summer of 2013.
The midfielder joins the club for a transfer fee of £2.4million.
Schalke manager Felix Magath told the club’s official website: “He is able to feature on the left and on the right side of midfield and has the ability to act as a playmaker as well.
“We moved for him quickly after it was obvious we would not be able to pounce for Misimovic.”
