Real Madrid have agreed a deal to sign striker Karim Benzema from Lyon, according to the French club.
The fee is believed to £30m for the 21-year-old France international and could rise to £35m.
Benzema had also been linked with Manchester United but now looks set for a switch to the Bernabeu.
Real Madrid have already signed forwards Cristiano Ronaldo and Kaka as well as defender Raul Albiol for a combined £148m so far this summer.
Former France and Real Madrid great Zinedine Zidane, who is now a senior advisor at the Spanish club, is believed to have recommended Benzema to club president Florentino Perez after negotiations to sign David Villa from Valencia broke down.
"Lyon announce they have reached an agreement with Real Madrid on the details of the transfer of their international attacker Karim Benzema," said a statement on the Lyon website.
"A few days ago Karim Benzema informed the club president Jean Michel Aulas of his desire to move to the Madrid club, which had always been his favourite club after Lyon, earlier than he had foreseen.
"The player wanted to seize the opportunity which Real Madrid offered him to be one of the major elements in their new ambitious project based around the greatest players of the world.
"Lyon accepted Karim Benzema's decision and negotiated the conditions of a transfer which satisfies all the different parties.
"The club wishes Karim the greatest success with Real Madrid."
Benzema joined Lyon's youth academy at the age of nine and progressed through club's ranks before making his first-team debut aged 17.
He scored 31 goals in 51 games during the 2007-08 season to finish top scorer in Ligue 1.
Benzema scored 23 goals in all competitions last season but could not prevent Lyon ending the season without league title for the first time in eight years. The striker is now expected to sign a six-year contract when he completes his move to Real Madrid.
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