Gotze has made 63 global appearances for Germany, and also featured in a combined 332 club games during his spells with Bayern Munich and Dortmund.
Though he has only clocked up a total of 504 minutes on the pitch - the equivalent of five full games - as his influence predominantly came from the bench.
The 2014 World Cup victor, who scored the decisive goal in the final against Argentina, has struggled for regular form and fitness in recent years partly due to a debilitating metabolic condition.
Dortmund sporting director Michael Zorc said Saturday that he spoke with Gotze in the last few days and they agreed he would move on for next season.
"It was a mutual and respectful decision". He is a very good player who comes from our own youth system.
The arrival of Erling Haaland from Red Bull Salzburg earlier this year also saw the 27-year-old's fall further down the pecking order.
The midfielder confirmed in April that he was planning to leave Signal Iduna Park as he sought a new direction for his career, although CEO Hans-Joachim Watzke later suggested Gotze could decide to sign a new contract.