Real Madrid are said to have completed their first transfer of the summer window, with the attacking midfielder joining in the summer.
Augusto Galvan, a Br azilian 17-year-old, will turn 18 at the end of March and will then be able to move to the Spanish capital.
The player, currently plying his trade for Sao Paulo in Br azil was also subject to interest from Barcelona but Madrid have seemingly sealed a deal.
Galvan will originally join up with the Castilla side before potentially being promoted to the first-team setup.
The deal will initially cost the club €1m but could rise €3m if certain clauses are met but that will be no problem for a club such as Los Blancos.