Manchester United have confirmed they have 'agreed terms' for the transfer of highly-rated Japanese midfielder Shinji Kagawa from Borussia Dortmund.
Negotiations have been on-going with the 23-year-old for a number of weeks.
The deal, which is thought to be worth £12million, potentially rising to £17million with add-ons, is subject to a medical and work permit, although this is believed to be a formality.
The Japan international has established himself as a key figure at Dortmund after arriving from native club Cerezo Osaka in 2010, scoring 16 goals in all competitions last season.
He marks United's first signing this summer as Sir Alex Ferguson looks to bolster his midfield options.
It is not anticipated the deal will be completed until the end of the month as Kagawa is currently on international duty and played in Japan's 3-0 World Cup qualifying round victory over Oman at the weekend.
"Manchester United is delighted to announce that it has agreed terms with both Borussia Dortmund and Shinji Kagawa for his transfer to the club," said a United statement.
"The deal is subject only to the player medical and obtaining a UK work permit. These conditions are anticipated to be completed by the end of June.
"Further details will be announced in due course."
United defender Rio Ferdinand was quick to offer his best wishes on Twitter.
"Welcome to Shinji Kagawa for his transfer to Man Utd," he said. "Here's to a succesful (sic) time here bro!"