Davies, who was born in Ghana, has scored three goals in 20 appearances for the Whitecaps this season.
"Alphonso Davies is a very big talent," Bayern sporting director Hasan Salihamidzic told the club's.
"At the age of 17, he offers a lot of promise for the future. Alphonso already possesses great ability, which is why a lot of top clubs were keen on him. I'm delighted he's chosen FC Bayern... "
Davies, who turns 18 in November, has signed a contract with Bayern until June 2023 and will officially join them in January following the conclusion of the MLS season.
(Reporting by Aditi Prakash in Bengaluru; Editing by Peter Rutherford)
