The 22-year-old Brisbane Roar product had been linked with a move to the 2.Bundesliga, already home to fellow Australians Jamie Maclaren, Brandon Borrello and Ben Halloran, but instead opted to accept the chance to remain with the Bundesliga side and ramp up his bid to break into coach Dieter Hecking's senior squad next season.
Yeboah, who turns 23 next June, scored 10 goals in 28 appearances for Gladbach's reserves in Germany's fourth tier this season, his first full campaign after an injury-hit three-plus years at the club.
Gladbach first team finished ninth on the Bundesliga ladder, and despite a season of relative mediocrity remain one of Germany's iconic clubs.
It was the club where Socceroos star Mathew Leckie cut his teeth in Germany, and Yeboah will now join the first team squad for pre-season after the northern summer break to press his claims for a breakthrough.
If he can do that, he will join Mitch Langerak (Stuttgart) and freshly-minted Hertha Berlin acquisition Leckie in Germany's top division.
Capped at Under-17 and Under-23 level by Australia, Yeboah must rise beyond Germany Regionalliga, where the reserves finished third, if he is to fulfill his ambitions of breaking into the Socceroos ranks at some point in his career.