Real Madrid have confirmed highly-rated teenager Sergio Canales will join the club from Racing Santander at the end of the season.
Canales has shot to prominence in recent weeks and he has been linked with a string of major clubs across the continent.
Arsenal, Chelsea and Manchester City were all rumoured to be keen to bring the 18-year-old to the Premier League, while European champions Barcelona were also credited with an interest.
However, Canales' father revealed last month that the midfielder wanted to join Real as he believed his career would be best served by a move to the Santiago Bernabeu.
Real have now announced that the talented youngster will join Manuel Pellegrini's star-studded squad on a six-year contract in the summer.
A club statement read: "Real Madrid C.F. and Racing de Santander have reached an agreement for the transfer of the player Sergio Canales Madrazo.
"The contract, which will link the player to Real Madrid CF over the next six seasons, will enter into force from 1 July 2010."
No fee was announced by either club.