It is also said that Madrid have included a buy-back clause in the wing-back's five-year deal.
A statement on Los Blancos' official website reads: "Real Madrid CF and Inter Milan have agreed to transfer Achraf Hakimi. The club wants to thank Achraf for all these years of dedication, professionalism and exemplary behaviour since he came to our academy in 2006 and wishes him good luck in his new phase."
Hakimi had been widely expected to return to Santiago Bernabeu after two stellar seasons at Borussia Dortmund, the 21-year-old announcing himself on the Champions League stage in style with important goals and assists.
Indeed, the player's agent, Alejandro Camano, had said his client was bound for the Spanish capital once his loan deal had been completed, but it seems the prospect of battling Dani Carvajal for a starting spot after being a regular starter at Signal Iduna Park forced the player to consider his options.
In linking up with Antonio Conte's Inter, the youngster is likely to be one of the first names on the team sheet, with Antonio Candreva entering the twilight of his career and Victor Moses only on loan from Chelsea.
In Conte's preferred system, Hakimi would likely line up on the right-hand side of a midfield five in a 3-5-2 formation, operating in his natural right-wing-back role.
Hakimi is a full international for the Morocco national team despite being born in Madrid, already has 28 caps to his name and has scored two goals along the way.
Former Morocco international Houssine Kharja, who also played for Inter before hanging up his boots, claims that his old club have been monitoring Hakimi's development for over two years, with Nerazzurri director Piero Ausilio allegedly asking for his opinion.
“Ausilio has been following him for a long time,” Kharja told Gianluca Di Marzio . “Two and a half years ago, when he was still at Real Madrid and was not playing, he started asking me about him several times. Inter is a major club, and Conte's tactics will be perfect for him.
“He is very strong, in all the years of the national team I have never seen anyone like him. He is very intelligent, he will be able to adapt to Italian football.
“He may struggle in the defensive phase, perhaps at the beginning, but he will certainly be helped. After all, even Maicon had some difficulties, then he won the treble. Hakimi is ready and will improve.
“Playing in a stadium like San Siro will be an extra stimulus: he's not afraid of anything, like me. He played in Madrid and Dortmund, also winning a Champions League. The [Giuseppe] Meazza can only charge him up.”