Benfica have confirmed the sale of Fabio Coentrao to Real Madrid for a fee of £26.9 million.
The 23-year-old has agreed to a six-year deal at Santiago Bernabeu and has passed a medical.
A statement released on Tuesday afternoon by the Portuguese side reads:
"Sport Lisboa e Benfica, in agreement with the terms of article 248 of the stock market values code, informs that it has reached an agreement in principle with Real Madrid FC for the complete transfer, total sporting and economic rights of the athlete Fabio Coentrao for the value of €30 million [£26.9m]."
Real Madrid have also released a statement, which reads: "Fabio Coentrao officially became Real Madrid's latest signing by signing a six-season contract with the club after passing his medical.
"He was greeted by Real Madrid president Florentino Perez in the board room of the Santiago Bernabeu Stadium.
Coentrao was previously linked with Bayern Munich and Chelsea before deciding on a La Liga move.