Tottenham have reached an agreement with Real Madrid for the transfer of Luka Modric for a fee in the region of £30m.
The Croatia midfielder, 26, will travel to Spain on Monday for a medical before signing a five-year contract.
Tottenham also announced they are entering a partnership with Real Madrid, reports the BBC.
The agreement will see the two clubs working together in respect of players, coaching and commercial relationships.
"Luka has been a terrific player for us and, while we preferred not to part with him, we are pleased that it is to Real Madrid, a club with which we now look forward to sharing a long and productive partnership," said Tottenham chairman, Daniel Levy.
Modric joined Tottenham in 2008 in a £16.5m deal from Croatian side, Dinamo Zagreb.
He made over 150 appearances for the London club, scoring 17 goals.
Real Madrid president Florentino Perez Rodriguez added: "We are delighted to welcome Luka and look forward to working closely with Tottenham in the coming years."
Initially playing as a defensive midfielder under former manager Juande Ramos, Modric was moved into a more advanced role when Harry Redknapp became manager in October 2008.