Real Madrid are set to replace midfielder, Mateo Kovacic, with former Barcelona star, Thiago Alcantara.
The Spanish giants will sign the Spaniard from Bayern Munich, as the player is expected to leave the club this summer.
European clubs still have until August 31 to do business in the transfer market.
Real Madrid are lacking a midfielder after they allowed Kovacic to join Chelsea on a season-long loan deal.
Spanish radio station, Onda Cero reports that Blancos have now reached an agreement with Thiago, but negotiations with Bayern are still to come.
The Barcelona star is said to be the only player new manager, Julen Lopetegui, requested for while taking over as Real Madrid boss.
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