The 22-year-old English-born France Under-21 forward made 90 appearances in all competitions over three seasons with Palace.

He joined the Eagles from Reading for £8m in July 2021.

Chelsea and Newcastle United registered their interest in Olise earlier this summer but the winger has chosen to move to Germany, where he will work under Bayern's new manager Vincent Kompany.

"I'm very happy to now be playing for such a big club - it's a great challenge and that's exactly what I was looking for," said Olise.

"I want to prove myself at this level and play my part in ensuring we win as many titles as possible in the coming years."

Olise scored 10 goals in 19 Premier League appearances as Palace finished 10th in the table last season.

He has been selected in the France squad for the Olympics that start in Paris later this month.

"We are hugely proud of what Michael has achieved at Crystal Palace, a club where he has developed greatly as a player," said Eagles chairman Steve Parish.

"We respect his desire to further test himself at the highest level of world football."

Bayern are also set to complete the signing of Fulham's Joao Palhinha in a deal worth £42m plus £4m in add-ons.

The 28-year-old Portugal midfielder was close to joining Bayern last summer but a deal collapsed on deadline day.

England defender Eric Dier has also joined the Bundesliga club permanently after playing for them on loan from Tottenham Hotspur since January.

Bayern's 11-year hold on the German title was ended by Bayer Leverkusen last season.