BAYERN Munich have agreed a deal to sign rumoured Manchester United target Thiago Alcantara from Barcelona for £21.6m.
The Spain midfielder will link up with his ex-Barca coach Pep Guardiola at the European champions.
"Thiago Alcantara was the great desire of our new coach Pep Guardiola," said Bayern chairman Karl-Heinz Rummenigge.
The German champions said Thiago would complete a medical in Munich this week before signing a four-year contract.
It is thought he wanted to leave Barcelona to boost his chances of being named in Spain's World Cup squad next summer.
He captained his nation to the European Under-21 Championship in June and scored a first-half hat-trick against Italy in the final.
"Thiago is a fantastic player with great perspective, which will strengthen Bayern," added Rummenigge.
Bayern say they will pay £17.3m up front, with Thiago forfeiting some money and a friendly against Barcelona in the next four years counting towards the total fee.
The Italian-born player, son of Brazil's 1994 Word Cup-winning midfielder Mazinho, was given his Barcelona debut by Guardiola, who left the Nou Camp at the end of the 2011-12 season.
Bayern have already signed Borussia Dortmund forward Mario Gotze and Mainz defender Jan Kirchhoff this summer.