Bayern Munich president Uli Hoeness has revealed that the club have reached an agreement in principle for the transfer of Schalke goalkeeper Manuel Neuer.

The 25-year-old has been constantly linked with a move to the Allianz Arena this term, but has also been the reported target of Manchester United.

Bayern, however, appear to have won the race for the German international, and have conceded a deal is in place.

"Our management have been able to outline an agreement with Schalke. The question is now whether they will want to formalise the deal," he told Sky Deutschland.

Hoeness went on to reveal that it is down to Schalke when to release the announcement as the Royal Blues face local rivals and 2.Bundesliga outfit Duisburg in next Saturday's DFB-Pokal final in Berlin's Olympiastadion.

"They have to decide whether or not it is a psychological advantage for them to announce the deal before the match."

According to a report from Bild earlier this week, Germany's most successful team will pay between €18-20m [£15-17m] upfront with a series of performance related bonuses to come depending on Bayern's success in the Bundesliga and Champions League.

Hoeness also revealed that the Bayern, who last week confirmed their participation in next season's Champions League, are interested in taking Arturo Vidal from Bayer Leverkusen, having already secured the services of Bayer's coach Jupp Heynckes for next season.