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"Juventus announce that an agreement has been finalised with VfL Wolfsburg for the sale of Diego for 15.5 million euros," Italy's Juventus said in a statement.
The 25-year-old joined Juve from Werder Bremen last summer but failed to establish himself in Turin in a disappointing season for the club.
The Bianconeri have made seven major signings in the close season to compete for the Serie A title this season.
They landed defenders Leonardo Bonucci and Marco Motta, midfielder Davide Lanzafame, wingers Simone Pepe and Milos Krasic, forward Jorge Martinez and goalkeeper Marco Storari.
Reports are also suggesting that they would sign Napoli forward forward Fabio Quagliarella before the end of August.