Borussia sporting director Max Eberl recently admitted the club’s interest in the 25-year-old, but denied any deal had been made.
However, Bild understands that die Fohlen have agreed to match the €2.5 million clause, with the official confirmation pending a medical.
Kruse, who has a deal until June 2015 at Freiburg, has agreed a four-year contract with die Fohlen that will commence in the summer.
Max Kruse came through the youth ranks at Werder Bremen, but went on to make just one Bundesliga appearance for the club before switching to St Pauli.
He enjoyed a lot of success during the three years at St Pauli, with some excellent showings earning him a move to Freiburg last summer.
After scoring 7 goals and setting up another 6 in 26 Bundesliga matches, Kruse is set to a new transfer that should help his career flourish.