The deal for the former Grasshoppers Zurich and Rubin Kazan defender contains an option for the Scottish champions to buy him next summer.

Bauer, 27, has made 26 appearances for Stoke in the last two seasons, but has fallen out of favour.

"I'm really, really looking forward to it," he said of joining the Scottish Premiership club.

"It's a massive club with a big history and when you see the stadium from the outside and the players there who have already worn the jersey - they are big names.

"I love having the target of being first as I like that pressure. There are players here who have already won titles, and it's a big opportunity for me to learn from them and grow as a player."

Bauer becomes Celtic's sixth senior signing of the summer and will compete with fellow new recruit Hatem Abd Elhamed for the right-back spot.