Mandzukic has recently been linked with a number of club, including Everton, Juventus and Bayern Munich.
The 26-year-old scored three goals for Croatia at Euro 2012.
Mandzukic’s agent Ivan Cvjetkovic has now confirmed that the striker will join Bayern Munich.
“We are very glad that the transfer worked, this is the right step for Mario,” Cvjetkovic told Sport1.
“We have done everything right. After two years at Wolfsburg, this is the next logical step in Mario’s career.”