Real Madrid will unveil Jose Mourinho as their new manager on Monday after agreeing compensation with Inter Milan.
Club presidents Massimo Moratti and Florentino Perez met in Milan on Friday to thrash out a deal to allow Mourinho to quit the Champions League winners.
Mourinho, 47, will replace Manuel Pellegrini in the Madrid hotseat after the Chilean was sacked on Wednesday.
Inter had claimed they were due £13.5m under the terms of Mourinho's contract, which was due to run until 2012.
Mourinho, who took over at the San Siro in 2008, became only the third man to win European club football's most prestigious competition with two different clubs when Inter beat Bayern Munich 2-0 in Saturday's Champions League final.
That success also assured the Nerazzuri's place in the history books as they became the first Italian team to win the Treble, having already retained the Serie A title and beaten Roma to lift the Italian Cup.
Former Chelsea boss Mourinho is contracted to Inter until 2012.
Pellegrini's free-scoring Real side finished runners-up in the Spanish League this season, netting 102 goals in 38 games, with 60 of those strikes coming at home.
But the 56-year-old Chilean was dismissed for failing to land any silverware, despite the Spanish giants having signed Cristiano Ronaldo, Kaka, Karim Benzema and Xabi Alonso for a combined fee in excess of £196m in the summer of 2009.
Source: BBC
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