Real Madrid have announced the signing of Manchester City midfielder Brahim Diaz on a six-and-a-half year deal.

The 19-year-old will have a medical in Madrid on Monday before completing his widely-anticipated move and being presented at an event at the Bernabeu.

Madrid will hope the timing of the announcement will lift spirits, having come barely an hour after their disappointing season suffered another setback with a 2-0 home defeat to Real Sociedad.

A Real Madrid statement said: "Real Madrid and Manchester City have reached an agreement over the transfer of Brahim Diaz, who joins the club for the remainder of this season and the next six campaigns, until 30 June 2025.

"After completing his medical, which will take place tomorrow, Monday 7 January, the player will be unveiled at 1.30pm CET in the presidential box at the Santiago Bernabeu."

City had hoped to keep the Spaniard but believe a deal Press Association Sport understands could be worth up to £22million represents good value for a player who had just six months left on his contract.

The deal with City also includes a 15 per cent sell-on fee but, interestingly, it is understood that rises to 40 per cent should Real sell the Spain Under-21 international to Manchester United.

Diaz has been at City since joining from home-town club Malaga at the age of 14 but has seen first-team opportunities limited at the Etihad, with the likes of Raheem Sterling, Leroy Sane and Riyad Mahrez ahead of him in the pecking order.

In total, Diaz has made 15 appearances for Pep Guardiola's side, his most recent being last month's Carabao Cup quarter-final win over Leicester.

In a statement on social media, Brahim thanked City for their role in his development.

"Today I close a chapter of my life and I say goodbye to Manchester City, the club where I have grown," Diaz wrote.

"I came here being a kid and now I am a professional footballer.

"Thank you to all the managers in the club, from the academy to the first team, for believing in me because they taught me not only to be a better player, but a better person."