Real Madrid have reportedly agreed to pay 17 million euros up front for Brahim Diaz, whose deal at Manchester City was set to expire in June.
Real announced on Sunday that Diaz had agreed to a six-and-a-half-year contract with the European champions.
Madrid have reportedly agreed to pay 17 million euros up front for Diaz, whose deal at Manchester City was set to expire in June, with a further seven million euros due depending on performance.
He moved to the Premier League from Malaga in 2013 but had struggled to establish himself in City's first team, having made just three League Cup starts in this campaign.
Diaz, who will play under the number 21 jersey at Real Madrid, will join a talented group of young Spanish players at the club, which already includes Marco Asensio, Dani Ceballos, Marcos Llorente, Alvaro Odriozola and Sergio Reguilon.
Real are currently fifth in La Liga, 10 points behinds leaders Barcelona, following their shock 2-0 defeat at home on Sunday to Real Sociedad.
They are also struggling with a string of injuries as Wales forward Gareth Bale missed Sunday's shock 2-0 home defeat to Real Sociedad due to a calf injury, while Asensio has been out since mid-December.
Both are expected to return later this month but their injuries give Diaz a possible immediate route to the club's starting line-up.
Real host struggling Leganes in the Copa del Rey on Wednesday, while on Sunday they travel to face Real Betis in La Liga.