Everton today conceded defeat in their bid to hold on to midfield talisman Thomas Gravesen.
The 28-year-old Denmark international has been the driving force behind the Toffees' rise to fourth place in the Barclays Premiership this season.
But they have failed to resist Real Madrid's overtures for the player, and he will tie up the loose ends of a £2.45million deal.
Everton will also collect 20% of any sell-on fee and have been given first refusal on Gravesen in a special buy-back clause.
The Toffees had faced losing Gravesen for nothing at the end of the season when his contract was due to expire.
Chief executive Keith Wyness told www.evertonfc.com: "No-one at Everton wanted to lose Thomas Gravesen. We did everything we could to keep him.
"Once it became clear Thomas had set his heart on a move to Real Madrid we fought hard for the best possible deal. To that end I believe we have been successful."
