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The 21-year-old has established himself as an up-and-coming talent in the Bundesliga after making his senior breakthrough with Schalke in 2017.
McKenniemade 28 Bundesliga appearances for Schalke last term and scored three goals, having racked up 75 career appearances in Germany's top flight.
At international level, the FC Dallas academy product hasearned 19 caps for the U.S. national team.
McKennie will become new head coach Andrea Pirlo's first signing after Juve appointed their former midfielder to take over from Maurizio Sarri on August 8.
Juventus have already seen midfielder Blaise Matuidileave the club this summer to join MLS outfit Inter Miami,while Goal has reported thatGonzalo Higuain and Sami Khedira have both been told they can leave.
With Matuidi gone and Khedira on his way out, there should be more playing time available in central midfield for McKennie, who will be integrated into the team along with ex-Barcelona midfielder Arthur Melo.
McKennie is also able to play several positions in defence, with Schalke taking advantage of his versatility during his time with the Royal Blues.
A reported switch to fellow Bundesliga outfit Hertha also fell through, with Schalke looking to sell the USMNT man to raise funds amid a difficult financial period for the club.
Last month the club's sporting directorJochen Schneider expressed optimism that McKennie would stay put, while admitting his side would have to rely on youth while they are unable to spend big on transfers.
“We won't be able to afford the seasoned top players in the next few years. We have to be honest,"Schneider told Sport1.
“We have to rely on the young players who emerge from the academy, but also on younger players who we bring to the club.