France Under-19 international has penned a four-and-a-half-year contract with RB Leipzig.
The youngster is regarded as one of the most promising defenders in Europe, having guided his country to win the 2015 Euro U17 Championship.
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Following the signing, Leipzig sporting director Ralf Rangnick said: “Dayot Upamecano has made a great development at Red Bull Salzburg over the past year and a half and has attracted attention with his strong national and international achievements.
“He is a player who, by his age, his potential and his playing style, fits perfectly with our club and our philosophy.
“We are very pleased that, despite numerous offers from international top clubs, he has decided to change to us in order to make his next career step here. We are convinced that Dayot will be able to strengthen our squad qualitatively in the short term.”
Upamecano was a promising product from French club Valenciennes academy before joining Salzburg for £1.8m back in 2015. He appeared in 15 league matches and another 4 in the Europa League for Salzburg this season.
Meanwhile, Salzburg head of football Christoph Freund claimed that other top European clubs had also tried sign the starlet.
“We are very proud with the way Dayot has performed for us in recent months and to have been able to develop a player with his quality in the Austrian Bundesliga,” the club chief stated.
“Due to the many high-profile interested clubs and queries in the past few weeks, it was only going to be a matter of time until he left us, and he has decided to leave FC Red Bull Salzburg for one of the best leagues in Europe.”