Bayern Munich have agreed a deal to bring Barcelona midfielder Thiago Alcantara to the club.
Thiago, who had been heavily linked with a move to Manchester United, will move to the Allianz Arena on a four-year deal, subject to a medical, for a fee of €25million euros.
Bayern will only receive €20million of that fee, with the remaining €5million to be made up by revenue generated from a friendly between the two teams and the fact Thiago has waived personal salary payments.
The 22-year-old will link up with former manager Pep Guardiola in Munich after he took the reins from treble-winning boss Jupp Heynckes in June.
Spain international Thiago becomes the third signing of the Guardiola era following the captures of Mario Goetze and Jan Kirchoff.
Bayern chairman Karl-Heinz Rummenigge was quick to express his delight at sealing the deal.
"Thiago Alcantara was the great desire of our new coach Pep Guardiola," Rummenigge told the club's official website.
"We are delighted that we pulled off this big transfer. Thiago has only just been selected as the best player of the UEFA U21 European Championship. He is a fantastic player with great perspective, which will strengthen Bayern."