— VfL Wolfsburg (@VfL_Wolfsburg) October 2, 2020
26-year-old Philipp, who can play across the front line, returns to the Bundesliga after just one year in Russia.
The former Germany under-21 international will wear the number 17 jersey for the Wolves.
Dynamo signed Philipp from Borussia Dortmund for €20m and he scored eight goals in 20 league games last season.
However, as Kicker reports, he wanted to go back to Germany and was even willing to take a pay-cut to facilitate a move.
He will reportedly earn one third of his €4m annual salary while at Wolfsburg.
Philipp almost joined Wolfsburg before moving to Moscow, but the deal was cancelled when Josip Brekalo decided to stay.