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The eccentric midfielder has committed to a two-year contract with the club, and will arrive in Istanbul over the coming days, where he will receive €3 million [£2.4m] a season in wages.
He will be accompanied by chairman Yildirim Demiroren, who was in Spain to bolster the side's negotiation power in luring the 33-year-old from the Santiago Bernabeu.
Blackburn Rovers had been interested in the play maker but were beaten to his signing by the Turkish giants.
Since signing former los Blancos coach Bernd Schuster, the tactician has been active on the transfer market, capturing the signature of former Inter winger Ricardo Quaresma. He also aims to sign Guti's team-mate Raul.
Guti has made 387 appearances for the nine-time Champions League winners, scoring 46 goals.
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