Liverpool defender Alvaro Arbeloa [ Images ] has passed a medical and will sign a five-year contract with Real Madrid [ Images ], the Primera Liga club said on their website (www.realmadrid.com) on Wednesday.
Liverpool had earlier confirmed the agreement in a statement.
The versatile Spanish international returns to the club he originally joined as 16-year-old from Real Zaragoza.
He developed through the Real youth system but found his opportunities limited in the first team and left for Deportivo Coruna in 2006, and then Liverpool in January 2007. He had one year left to run on his contract.
The 26-year-old won his first full international cap in March last year and was a member of Spain's victorious Euro 2008 [ Images ] squad.
Spanish media reported the deal was worth around 4 million euros ($5.66 million), taking Real's close-season spending up towards the 220 million euro mark.
Real Madrid are also chasing Arbeloa's Liverpool team mate Xabi Alonso [ Images ].