Real Madrid have signed midfielder Mateo Kovacic from Inter Milan on a six-year contract for an undisclosed fee, the Spanish giants announced on Tuesday afternoon.
The Croatia international, who was a reported target of Liverpool, moves to the Bernabeu stadium in a reported £25 million transfer deal and becomes Real's fifth summer signing.
A statement from Real Madrid read: "Real Madrid FC and Inter Milan have reached an agreement for the transfer of Mateo Kovacic, who has joined the club for the next six seasons.
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"The player will be unveiled to the media on Wednesday after undergoing a medical."
The 21-year-old Kovacic signed for Inter in the summer of 2013 from Dinamo Zagreb and has made 80 appearances for the Nerazzurri.
Kovacic signed a new contract with Inter until June 2019 last season and attracted the attention of top European clubs after scoring five goals and setting up three more in 35 Serie A appearances under manager Roberto Mancini in the 2014-15 campaign.
Real, coached by former Napoli manager Rafa Benitez, begin the La Liga season at Sporting Gijon on Sunday.