Real Madrid are understood to have beaten a host of English clubs to the signing of Espanyol prospect Jose Callejon.
A number of Premier League sides have been checking on the highly-rated Callejon.
But now the 24-year-old looks to be heading back to the Santiago Bernabeu - the club where he began his career.
Callejon was part of Real's youth set-up but he never made an appearance for the first-team before moving to Espanyol in 2008 alongside his twin-brother Juanmi.
Upon moving to the Barcelona-based outfit, Callejon quickly became a first-team regular and has now emerged as one of the top young prospects in La Liga.
Both Blackburn and Everton have been tracking him closely in recent weeks, but now Real have moved to take Callejon back home.
Callejon had just over 12 months left on his contract with Espanyol but having shunned a new extension, they were happy to strike a deal.
It is reported Real will pay €5million for their former youth product.