The 25-year-old, who never made the breakthrough at Bayern, will attempt to fill the boots of German international Ilkay Gundogan, who has moved to Manchester City.
Rode arrives at Dortmund after they swooped for France Under-21 winger Ousmane Dembele, Â Marc Bartra from Barcelona and Mikel Merino from Spanish side Osasuna.
"Since my childhood I have been a fan of Dortmund," Rode said.
Dortmund, who were distant runners-up to Bayern in the season just gone, have lost two Germany stars after Mats Hummels' departure to Bayern was followed by Gundogan joining City for a reported £21m euros.