Phil Jones has signed a five-year contract with Manchester United, the Premier League champions have confirmed.
United thought they had secured Jones' services last week, only for the transfer to be halted due to an unforeseen snag.
It was claimed Blackburn were holding out for more cash and that Liverpool had jumped in with a £20million offer.
However, Jones, who featured for England Under 21s in their opening European Championship match against Spain in Denmark on Sunday night, apparently told Rovers he did not wish to join any other club than United.
And with the Red Devils refusing to budge beyond the figure, believed to be £16.5million, that triggered a buyout clause in the 19-year-old's contract, Blackburn have been forced to agree a sale.
"Manchester United is delighted to announce it has signed an agreement with Blackburn Rovers for the transfer of Phil Jones," said a United statement.
"The player passed a medical in Manchester last week and has agreed a five-year contract.
"The deal will be completed once the player returns from international duty."
The deal could become a potential record deal for Blackburn and the club have released a statement on behalf of the owners, board and manager.
"Much as we would love him to stay on with us, and we made all efforts to convince him to stay, Phil has to finally follow his heart," read the statement.
"We are extremely happy with his contribution to our team and we wish him all the very best in his future endeavours."