PSV Eindhoven have reached a deal with Feyenoord to bring midfielder Georginio Wijnaldum to the Philips Stadion.
The 20-year-old underwent a medical in Eindhoven at the weekend before putting pen to paper on a four-year contract on Monday.
Wijnaldum, who made his Feyenoord debut at the age of 16, had a year to go on his current deal and the Rotterdam club admit they are sorry to see him leave.
"We have made every effort to retain him but ultimately did not succeed," technical director Martin van Geel told Feyenoord's official website.
"It is with a heavy heart we see Georginio leave De Kuip. We recently offered him a contract extension, but if a player has decided he wants to pursue his career somewhere else, and you receive a realistic bid, then you have to seriously consider that as a club.
"We would have preferred that Georginio went abroad. A lot of foreign clubs were interested in him," Van Geel added.
"But because the player himself said he wanted to stay in Holland, we opened talks with PSV. Given that his contract expires next year, we managed to reach an agreement and we can be satisfied."
PSV confirmed Wijnaldum, who scored 23 goals in 111 league matches for Feyenoord, had signed a deal with the Eindhoven side.
"This is very special for me," the midfielder said on PSV's official website. "I still can't believe it.
"I'm still a young player and I would like to develop. Therefore, staying in Holland remained the best choice.
"PSV are always competing for the title and I've never experienced that. I have a very good squad around me here."