Ibisevic passed his medical with Stuttgart on Wednesday morning before putting pen to paper on a contract with the Swabian club until 2016.
Stuttgart did not disclose a fee for the 27-year-old, who had 18 months left on his Hoffenheim contract, although reports in Germany suggest he could cost around five million euros.
Ibisevic, who will train with his new team-mates this afternoon and will wear the number nine shirt for Stuttgart, said on www.vfb.de: "I am delighted the transfer has gone through. VfB are a great club with huge potential. I'm especially looking forward to the special atmosphere at the Mercedes-Benz Arena."
Ibisevic has scored 49 goals in 116 Bundesliga games for Hoffenheim and Alemannia Aachen.
Stuttgart coach Bruno Labbadia added: "Vedad Ibisevic has proven he has an eye for goal in recent years and we are confident that he will show that with us."
Stuttgart have slumped to 10th place in the Bundesliga standings after taking just one point from their last five games.