Cruzeiro have agreed to sell defensive midfielder Lucas Silva to Real Madrid, the Brazilian champions said on Thursday.
Spanish media reported the fee would be around 15 million euros ($17.4 million).
Silva, 21, is considered to be one of Brazil's most promising young players and has represented his country at junior level.
"We have been in touch with Real Madrid since last year and we're now discussing a fee," Cruzeiro's director of football Valdir Barbosa told ESPN radio. "I think a deal should be complete by the start of next week."
Silva was released from training on Thursday to have a medical with the European champions, said reports.
His arrival could prompt the departure of Asier Illarramendi who is believed to be a target for Real's struggling La Liga rivals Athletic Bilbao.
Swansea swoop for Tottenham defender Naughton
Swansea City have signed Tottenham Hotspur's former England under-21 fullback Kyle Naughton on a 3-1/2 year deal, the Premier League clubs said on Thursday.
Naughton, who is eligible for Saturday’s FA Cup fourth round tie at Blackburn Rovers, has already trained with his new team.
Spurs bought the versatile defender from Sheffield United in a double deal that also saw Kyle Walker move to London in 2009.
The 26-year-old Naughton, a right back who can also fill in on the left, played 74 games for Tottenham and also had loan spells at Middlesbrough, Leicester City and Norwich City.
“I’ve had quite a few loan moves over my career, but I actually played 34 games last season for Spurs, which is a fair amount," Naughton told Swansea's website (www.swanseacity.net).
"The main problem for me, however, was that I was still in and out of the team. That’s difficult at times.
“I’m pleased it’s all done because there has been talk since the summer over a potential move. ...I just want to settle into life at Swansea and try to play regularly. It all comes down to playing football -- after all, that’s my job."
