"Real Madrid would like to announce the agreement reached with Olympique Lyonnais and Mahamadou Diarra for the transfer of the player," read the statement on Real’s official website.

"Diarra will have his medical exam and be officially presented to the media in the upcoming days," it continued.

Spanish media claim that Real agreed to pay the French champions 26 million Euros ($33.37 million) for the services of the combative 25-year-old.

Real Madrid have been in negotiations with Lyon over the Mali international for the bulk of the summer based on coach Fabio Capello’s request.

"He was the signing our coach (Capello) had asked for because he considered him to be essential and so we are delighted that we are able to grant him his wish," said Real Madrid president Ramon Calderon said.

Diarra’s arrival means he will team up with another new signing, Emerson, in the holding midfielder position.

"Capello thinks he will be a key player in helping form a solid block in the center of midfield where he will provide a lot of help to both Emerson and to the back four," said Calderon.

Although Diarra is Real’s fourth signing in the close-season after Emerson, Fabio Cannavaro and Ruud van Nistelrooy, Calderon is optimistic he won’t be the last.

"There's a week or so left until we finalise the squad and I think we will be able to provide the fans with another reason to celebrate before then," said Calderon.

Diarra has helped Lyon win four Ligue 1 titles since joining them from Vitesse Arnhem in 2002.