The winger is contracted to Juventus through to the end of the 2021-2022 season but he will spend that time back in his native Brazil, with the club at which he began his career.

Costa, 30, started this season at Juventus but joined another of his former teams, Bayern Munich, on a temporary basis in October and spent the rest of the campaign until now with the Bundesliga giant.

An injury-hit campaign meant Costa was not expected to extend that stay at Bayern, and his loan to the German giant was formally terminated on Saturday (AEST).

Now the former Brazil international is heading back home, after 11 and a half years in Europe. He was initially acquired by Shakhtar Donetsk from Gremio in January 2010.

Juventus announced on their website: "Douglas Costa has officially signed for Gremio on a free loan from Juventus.

"The Brazilian winger, who joined Juventus back in 2017 and spent this past season on loan at Bayern Munich, will wear the shirt of the Porto Alegre outfit until 30 June 2022."

Costa won a league championship in every season but one of his career in Europe.

He helped Shakhtar win the Ukrainian title every year from 2010 to 2014 before it was denied by Dynamo Kiev in 2015, going on to lift the Bundesliga in 2016, 2017 and 2021 with Bayern, and Serie A in 2018, 2019 and 2020 with Juventus.