The 29-year-old Austria international has joined Dortmund on a contract until 30 June, 2027.
Sabitzer had a stint on loan at Manchester United last season after signing for the Old Trafford club in January.
"I can't wait to finally join the team and wear the BVB jersey," said Sabitzer.
"The discussions with Borussia Dortmund's managers were excellent and showed me how ambitious the club wants to be in the coming years.
"I would like to do my part to ensure that BVB achieves its goals and that it has every reason to celebrate something special with its fans again as soon as possible."
Dortmund missed out on the Bundesliga title on goal difference last season after being held to a 2-2 draw by Mainz on the final day of the campaign.
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