VfB Stuttgart had resisted meeting VfL Wolfsburg's valuation for some time, but the club's hierarchy ultimately relented to land their top target, partly out of concern that a rival club might hijack the move.
Head coach Sebastian Hoeness had long identified Pejcinovic as his priority attacking target for the summer, with talks having intensified through July before both sides finally reached agreement in early August.
Porto had also shown strong interest in the 21-year-old, and RB Leipzig were reported by Bild to have considered a late attempt to sign him after their own move for Fisnik Asllani from Hoffenheim collapsed. That approach came to nothing, however, with Pejcinovic making clear it was always his preference to remain in Germany and join Stuttgart.
Pejcinovic is set to sign a contract with the newly-crowned Bundesliga fourth-place finishers running until 2031, which will earn him an annual salary of around €2.5m. No release clause has been included in the agreement, giving Stuttgart full control over any future transfer decisions involving the forward.
According to reports, Pejcinovic is due to travel to Stuttgart on Sunday ahead of a medical on Monday, with the move expected to be completed officially in the coming week.
The Germany Under-21 international scored 12 goals in 34 appearances across all competitions for Wolfsburg last season, including nine in the Bundesliga, having joined the club from Augsburg in 2022 for a fee of around €1.3m following a loan spell at Dusseldorf.
He was one of the few bright spots for Wolfsburg as they suffered relegation to the 2. Bundesliga for the first time in the club's history, a downturn in fortunes that ultimately left Wolfsburg unable to resist Stuttgart's offer for one of their prized assets.
Pejcinovic will also have the added incentive of Champions League football to look forward to at his new club, having qualified via their fourth-place finish in the Bundesliga last season.