Both sporting director Michael Zorc and the player were pleased to have struck a deal, with the Jojic particularly keen to play in the Champions League.
"We're delighted to have signed a versatile midfielder in Milos Jojic; he completes our squad," Bundesliga.com quotes Zorc as saying.
"I'm happy to be able to play for such a great club like Borussia Dortmund," Jojic said. "I'm looking forward to playing in the Bundesliga and in the Champions League."
Jojic said in December that he was keen to join BVB.