Alonso is on the verge of completing a €30million move from Liverpool, subject to a routine medical on Wednesday.

After spending around €250million on Cristiano Ronaldo, Kaka, Karim Benzema and Raul Albiol, Alonso is set the seal on a hectic summer at the Bernabeu.

"We understood Xabi Alonso was an important player to complete our squad, and it was worth Real Madrid fighting for him," Real director general Jorge Valdano told radio station Cadena Ser.

"The club needed a shake up. Some very good players have come in to strengthen every position and the fans are very excited.

"With this move we end the search for new players."