Adams, 19, will officially become a member of RB Leipzig, which is owned by the same global network as the New York team, once the winter transfer window opens in January. Terms of the deal were not disclosed.
He will be reunited with his former manager, Jesse Marsch, who left New York to join Leipzig as an assistant coach in July.
The U.S. international is a Red Bulls homegrown player, joining the club's academy in 2011 before signing a contract with reserve team New York Red Bulls II in March of 2015. He signed his first MLS contract later in the year.
During his time with the Red Bulls organization, Adams won the USL Cup in 2016 before becoming a regular starter for the senior team in 2017. He was a key contributor to the team that won the 2018 Supporters' Shield. The Red Bulls were eliminated from the MLS playoffs last Thursday by Atlanta United.
He has made nine appearances for the U.S. national team and scored against Mexico in a friendly in September.
Red Bulls sporting director Denis Hamlett wished Adams well on Sunday when the news was made official by the club.
"First and foremost, congratulations to Tyler and his family. We fully support Tyler's decision to take the next step in his career, and we wish him all the best," said Red Bulls Sporting Director Denis Hamlett. "This move is the culmination of years of hard work, dedication, and sacrifice from Tyler and his parents.
"There is a massive sense of pride around our organization in seeing Tyler go from a Red Bulls Summer camp, into the Regional Development School and our academy, to the First Team, the U.S. National Team, and now one of the top clubs and leagues in the world. We wish Tyler all the best and we know he will continue to be a shining example of the type of player and person we strive to develop."
Red Bulls manager Chris Armas echoed the sentiments of Hamlett on the club's website.
"We're genuinely happy for Tyler and his family and we know that he is ready for the next step," Armas said. "In these last four years, I've learned that he is simply incredible. Tyler has a maturity, fearlessness, work ethic, and desire to win that make him unique. Tyler is the gold standard for player development in this country and I think that our club and academy can feel very proud to have worked with him and influenced him along his path. We wish him the very best and look forward to watching him shine."
Is Leipzig the right move for Tyler Adams?
Steve Nicol and Craig Burley agree on the importance of early playing time for Tyler Adams in Germany after the American's move to RB Leipzig.