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Bayern Munich have signed 18-year-old Portuguese midfielder Renato Sanches from Benfica and Borussia Dortmund defender Mats Hummels, the Bundesliga club said on Tuesday.
Sanches, strongly linked in British media with a move to Manchester United, will join the German champions in June on a five-year contract for 35 million euros ($39.82 million).
"FC Bayern has been watching Renato Sanches for a long period," Bayern chairman Karl-Heinz Rummenigge told the club website.
"We're pleased we've been able to sign him despite big-name international competition. Renato is dynamic, a good tackler and a technically skilled midfielder who'll add even more strength to our team."
The box-to-box midfielder has become a mainstay in Benfica coach Rui Vitoria's team, playing 30 games for the club after making his first-team debut in October.
Sanches caught the eye with a mature display at Bayern's Allianz Arena when the two sides met in the Champions League quarter-finals last month.
Bayern deputy chairman Jan-Christian Dreesen explained the fee his club paid for Sanches, who is widely regarded as one of the most promising young players in Europe.
"The transfer fee for the current international, who was voted the Shooting Star of Portuguese Football in his home country yesterday evening, is €35 million, plus possible bonus payments that could become due if for example the player is named in the world team of the year or FIFA world player of the year," Dreesen said.
Borussia Dortmund have agreed to sell captain Mats Hummels to Bundesliga champions Bayern Munich, effective from the start of next season, his club said on Tuesday.
Both teams have agreed the terms of the transfer, which should be completed in coming days subject to a medical, Borussia Dortmund GmbH & Co said in a statement to the stock exchange.
The club gave no financial details.
Hummels will become the third key Dortmund player since 2013 to switch to Bayern, after Germany team mate Mario Goetze and Poland striker Robert Lewandowski.
"After long and intense deliberations Mats Hummels has decided to return to his hometown of Munich after eight-and-a-half years at BVB," club CEO Hans-Joachim Watzke said in a statement.
Hummels, a 27-year-old central defender who played over 200 games for Dortmund, has 46 international caps for Germany and was in the side that won the 2014 World Cup in Brazil.
He won the 2011 and 2012 Bundesliga with Dortmund as well as the 2012 German Cup. He also reached the 2013 Champions League final with the Ruhr valley club.
"I was and still am proud to wear the Borussia shirt and be part of this exceptional team," Hummels said.
"Before returning in the summer to my hometown we have a big goal and that is to bring the German Cup back to Dortmund and celebrate with a big football party."
Dortmund are second in Germany's Bundesliga, with Bayern already crowned champions and the teams meet in the Cup final on May 21.
