Borussia Dortmund has confirmed star youngster Christian Pulisic will join Chelsea next season, with the American loaned back to the Bundesliga club until the end of the season.

In a statement on its website, the German club confirmed it had settled on a transfer fee of 64 million euros ($AUD 104.3m).

Dortmund says the transfer is effective immediately but the 20-year-old Pulisic will be loaned back to the German club for the rest of this season.

It won’t have to pay Chelsea a fee for the loan. Pulisic’s contract with Dortmund ran until the end of next season.

“Borussia Dortmund has agreed with the English Premier League club FC Chelsea on a transfer of the Dortmund offensive player Christian Pulisic with immediate effect. The British in turn lend the player until the end of the current season to BVB,” the club said in a statement (translated to English).

“Pulisic’s change is logically completed until the 2019/2020 season.

“The transfer fee to be paid by Chelsea for Pulisic, whose BVB contract would have expired at the end of next season, is 64 million euros. A rental fee for the coming half year is not due for BVB.”

Sporting director Michael Zorc says “it was always Christian’s big dream to play in the Premier League. That certainly has to do with his American origins, and so it wasn’t possible for us to extend his contract.”

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