Real Madrid have confirmed that they have agreed a fee over the transfer of Kiko Casilla from Espanyol.
The £4.2 million transfer will be completed subject to a medical, was 50% owned by Real Madrid following his transfer from the Bernabeu to Espanyol in 2007, and now they have moved to bring him back.
The 28-year-old has put pen to paper on a contract over five years and will compete with Keylor Navas for first-team action next season.
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A statement on the official Real Madrid website read: "Real Madrid C. F. and R. C. D. Espanyol have agreed to the transfer of Kiko Casilla, subject to a necessary medical examination. The player will be tied to the club for the next five seasons."
The news is a further twist in Real Madrid's pursuit of Manchester United goalkeeper David de Gea. The Spanish international has one year left on his deal at Old Trafford and has rejected the offer of a £200,000-per-week extension.
Recent reports have suggested that Manchester United want Navas as part of the deal for De Gea, which now appears more likely after Casilla's arrival.
The Red Devils have also requested that Sergio Ramos is included in the deal while they've had an independent offer worth in the region of £28 million rejected by Real Madrid.
De Gea is currently away on tour with Manchester United in North America and it has been claimed that his employers would rather let him walk away for nothing next year than sell him in the current window - unless an record offer for a goalkeeper is made.
As it stands negotiations have reached a standstill, although Manchester United boss Louis van Gaal admitted earlier this week that he is still not sure where his number one goalkeeper will end up next season.
When asked about De Gea, he said: "I cannot say anything. His attitude is fantastic. It is stupid to ask."
When pushed about whether he will sign a goalkeeper the Dutchman admitted it was 'dependent' on De Gea, although with Victor Valdes about to leave the club he will likely move for another shotstopper regardless.
This is an interesting move from Madrid, although the fact that they already owned 50% of Casilla means it is a low-risk play on their behalf.
Does this signal that they are going to wait until next year to sign De Gea on a free? Does it mean that Navas will be used as a make-weight? Does it mean anything? Frankly we're in the middle of transfer season so the lines can become a bit blurred around now, and it doesn't look like a resolution is anywhere near being reached.
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