Real Madrid agreed a deal with Everton to sign Denmark midfielder Thomas Gravesen on a 3-1/2-year contract, the Spanish Primera Liga club said on Friday.

Spanish media reported that Real had paid 3.5 million euros ($4.59 million) for the 28-year-old, who would have become a free agent when his contract with Everton expired in June.

Gravesen joined Everton for 2-1/2 million pounds from SV Hamburg in July 2000 but is enjoying his best spell at the club this season after shining for Denmark in last year's European championship.

His combative tackling and efficient distribution have helped Everton to their best English Premier League start and he will be sorely missed as they battle to hang on to their unexpected place in the top four.