Real Madrid agreed to sign highly-rated Argentine midfielder Fernando Gago from Boca Juniors on Thursday on a six-and-a-half-year contract.
"Real and Boca have agreed a deal over the transfer of Fernando Gago," the Primera Liga club said on their website. "The player will sign until June 30, 2013."
Boca said the Spanish giants had bowed to their demands for a fee of $27 million.
The recruitment of the 20-year-old, who will be unveiled to the media on Friday, is part of the club's policy of rejuvenating their squad with South American players.
Gago's signing follows that of teenage striker Gonzalo Higuain, who joined Real last week for a fee of around 13 million euros and was presented on Thursday.
SIMILAR STYLE
Real have also bought Brazilian fullback Marcelo from Fluminense for a fee between six and nine million euros to act as cover for 33-year-old Roberto Carlos.
Gago, a member of the Boca team pipped to the Apertura championship by Estudiantes last week, has a similar style to Argentine midfielder Fernando Redondo, who played for Real between 1994 and 2000.
He is the eighth player to join Real since Ramon Calderon took over as president in July and brings the club's expenditure since then to close to 100 million euros.
Close-season recruits included recently crowned World and European Footballer of the Year Fabio Cannavaro, Brazilian midfielder Emerson, Dutch striker Ruud van Nistelrooy, Mali international Mahamadou Diarra and Spain winger Jose Antonio Reyes.
Third-placed Real, who have not won a major trophy for three seasons, were trounced 3-0 at home by promoted Recreativo Huelva on Wednesday and are five points behind leaders Sevilla.
