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The Argentina international is reportedly set to sign a four-year contract with Los Che, following the collapse of his proposed switch to the Stadio Olimpico earlier this summer

Valencia have confirmed that a "preliminary agreement" has been reached with both Real Madrid and Fernando Gago over a transfer to Mestalla.

The Argentina international was deemed surplus to requirements by Blancos boss Jose Mourinho last summer and was loaned to Roma, with a view to a permanent transfer at the end of the 2011-12 season.

However, the two clubs failed to reach an agreement over the fee and Gago is now on the verge of completing a move to Valencia. Indeed, Los Che confirmed on their website that they had agreed terms with both Madrid and the midfielder.

As Goal.com revealed, Gago's agent had arrived in Valencia on Thursday morning to thrash out a deal with club president Manuel Llorente.

The transfer has yet to be confirmed by either club but it is believed that Gago will put pen to paper on a four-year contract on Friday.

Gago, who has been capped 38 times by his country, joined Madrid from boyhood club Boca Juniors in 2007.

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