Over a total of nine seasons at Wolfsburg, the 33-year-old former Swiss international made 321 competitive appearances for the club and was a Bundesliga, DFB-Cup and Supercup winner.
"Goalkeeper and captain Diego Benaglio leaves the Wolves on July 1st, to take on a new challenge with the current French league title holders Monaco," the German club said in a statement.
Benaglio has signed a three-year contract with Monaco, who reached the semi-finals of the 2016-17 Champions League.
"VfL Wolfsburg would like to say 'Thank you, Diego Benaglio'! As a leader on and off the pitch, he played a significant role in the development of the club over the years like almost no other," Wolfsburg sporting director Olaf Rebbe noted.
"Diego is a true pro and we are delighted for him that he will be getting to play at the very highest level in Ligue 1 and the Champions League," he added.
"What pleases us even more though is that we have basically agreed with Diego Benaglio that he will return to take a position at VfL Wolfsburg once he finishes his active playing career and that he will remain closely connected with us."
Last season, he made just 14 Bundesliga appearances as Worlfsburg struggled in the Bundesliga before escaping relegation.
In total, Benaglio made 259 Bundesliga, 27 DFB-Cup and 35 European (UEFA Champions League, UEFA Europa League and UEFA Cup) appearances for Worlfsburg.
Benaglio won 61 international caps for his country -- participating in three World Cups, one European Championship and the 2012 Olympic Games in London.
"As much as I am looking forward to this new chapter in my career with AS Monaco, leaving here is very difficult for me. Wolfsburg and VfL have become the second home for my family and me," the player said.
"I am already looking forward to my return. VfL is and remains a great club - and my club! I will be forever grateful to VfL, the loyal fans and the entire region."
(This story has not been edited by Social News XYZ staff and is auto-generated from a syndicated feed.)
About VDC
Doraiah Chowdary Vundavally is a Software engineer at VTech . He is the news editor of SocialNews.XYZ and Freelance writer-contributes Telugu and English Columns on Films, Politics, and Gossips. He is the primary contributor for South Cinema Section of SocialNews.XYZ. His mission is to help to develop SocialNews.XYZ into a News website that has no bias or judgement towards any.