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Eintracht Frankfurt's goalkeeper Ralf Faehrmann reacts after their German Bundesliga soccer match against Borussia Dortmund in Dortmund May 14, 2011. [Photo/Agencies]
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While Schalke is losing its captain, the heavily indebted club could hardly afford to forgo the millions from Bayern.
Bayern has been courting Neuer for months and in April the goalkeeper said he would not extend his contract with Schalke. Schalke said it was Neuer's wish to leave immediately.
Bayern finished only third in the Bundesliga and will have to qualify for the Champions League.
By signing Neuer, Bayern hopes to find a long-term solution for its goalkeeping problems.
Coach Louis van Gaal decided to change goalkeepers in midseason, promoting untested Thomas Kraft over the experienced veteran Joerg Butt, a decision that ultimately cost the Dutchman his job. Butt returned to the goal after Van Gaal's firing and Kraft has since left the club.
Bayern's coach in the new season will be Jupp Heynckes.
Neuer is a native of Gelsenkirchen who joined Schalke in preschool days. He made his Bundesliga debut in August 2006 and played his first game for Germany less than three years later.
Neuer helped Germany finish third at last year's World Cup in South Africa.
Rafinha signed a three-year contract, Bayern said, also without giving details.
The 25-year-old Brazilian played for Schalke for five seasons before moving to Genoa one year ago.
"In Rafinha, we've signed an experienced player who will give our defense more stability," Bayern sporting director Christian Nerlinger said.
Rafinha said he was pleased to be "back in the Bundesliga."
Bayern said that the signing of Rafinha, who plays on the right flank, would move captain Philipp Lahm to left back, where he played for several seasons.
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