The 19-year-old striker has been heavily linked with a move to Old Trafford but has opted to join Schalke from Basel
Swiss wonderkid Breel Embolo has completed a surprise move to Schalke.
The 19-year-old has been heavily linked with Manchester United and the Red Devils were thought to have won the race for his signature.
Tottenham and Arsenal were also reportedly interested in the Basel striker, along with Borussia Dortmund and Wolfsburg - but it is their Bundesliga rivals who have won the race.
Schalke confirmed Embolo's arrival on Sunday, with the teenager costing €25m.
He has put pen to paper on a five-year deal with the German side.
Schalke taunted United and Arsenal with a video announcing the signing, with Embolo addressing the club's supporters.
He said: "Hello fans. I'm Breel Embolo and I'm happy to be a Royal Blue.
"I'm still away at the European Championship at the moment but I'm looking forward to the challenge ahead and playing for you guys, the fans. See you soon!"
Embolo and Switzerland exited Euro 2016 on Saturday following their last-16 defeat to Poland.
The clash ended 1-1 and went to penalties before Arsenal new boy Granit Xhakablazed wide.
Embolo failed to score in four games for the Swiss in France.