The total transfer plus add-ons will amount to £78m.
Despite prices as high as £100m being banded around for Tottenham Hotspur star Gareth Bale, Real Madrid are actually only going to pay £72m up front, according to AS.
This could rise to £78m with add-ons, but either way it will not go beyond the £80m Los Blancos paid for Cristiano Ronaldo four years ago.
The deal has been completed and will be finalised over the weekend, with Madrid hoping to announce the signing of Bale during their match on Sunday.
Spurs chairman Daniel Levy has been driving a hard bargain with the Spanish giants all summer, employing the same tactic as he did 12 months previously with Luka Modric.
However, this time around with Franco Baldini as sporting director the north London club have not made the same mistake and have already made six new signings.
The latest – Erik Lamela from AS Roma – is almost a like-for-like replacement for Bale and is now Tottenham’s most expensive player at £30m.
There were problems emerging at the Santiago Bernabeu with superstar Ronaldo, with the 28-year-old worried about being undermined by the Welshman.
By not topping the Portugal captain’s transfer fee, Madrid have sent out a message to the forward that despite Bale’s arrival, the No.7 is still the most important player at the club.
For others at Los Merengues this may not be the case though, with Mesut Ozil and Angel Di Maria linked with moves away, whilst Kaka has already admitted the Brazilian wants to leave the Bernabeu.
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