The midfielder will join Bayern from Bayer Leverkusen at the end of the current campaign in a record-breaking deal worth an estimated 100 million marks (around �30m).

Ballack turned down Real Madrid and Barcelona to stay in his home country and Hitzfeld believes his arrival will inspire the German champions.

"We are delighted that he has decided to come to Bayern Munich," said Hitzfeld.

"It's the right decision. With the addition of Ballack and Sebastian Deisler it will be tough for anyone to beat us."

Deisler will also move to Munich at the end of the season from Hertha Berlin.

Ballack, the highest-scoring midfielder in the Bundesliga with nine goals, also found the net three times in Germany's World Cup play-off victory over Ukraine.

Bayern will pay Leverkusen a fixed transfer fee of 28 million marks (around �9m), with Ballack receiving a 30 million marks signing-on fee and 32 million marks over the course of a four year contract.

Lucrative offers

It is the first time the 100 million mark barrier has been broken in German football.

"I have decided to take advantage of an exit clause in my contract with Bayer Leverkusen and will join Bayern Munich at the start of the next season," said Ballack.

"This was not an easy decision. The main reason is the sporting perspective. Bayern Munich is in every regard the top club in Europe.

"I had two more lucrative offers from abroad," Ballack said, calling his decision "a move for Germany".

He said Germany coach Rudi Voeller and Bayern Munich manager Karl-Heinz Rummenigge advised him to stay in Germany until after the 2006 World Cup.