The 23-year-old winger has been heavily linked with a move to the Bernabeu ever since Real Madrid president Ramon Calderon promised to land him during his election campaign last summer.
The deal had stalled over the player's valuation, with Real Madrid scoffing at the 36 million euro price tag.
However, the pre-season set-backs suffered by Los Merengues have forced their hand in some ways, and with the La Liga start less that 72 hours away, they have agreed to meet Chelsea's asking price.
Reads a statement released by the club:
Real Madrid CF and Chelsea FC have reached an agreement for the transfer of Arjen Robben to the Spanish Club. The Dutch player will sign a five-year contract with the Whites. The player still has to pass a medical exam.
The former PSV Eindhoven star, who was initially a massive success at Stamford Bridge before losing his way under manager Jose Mourinho last year, will travel to Madrid today, and put pen to paper on a five year deal after completing a medical.
The move sees Real president Ramon Calderon finally come good on a part of his election promise, which was to sign Cest Fabrages, Kaka and Arjen Robben.
Real Madrid have also signed Gabriel Heinze from Manchester United on Wednesday, the Argentine having been forced to leave Old Trafford anyway after his attempts to move to Liverpool crashed and burned.
The signings take Real Madrid's summer spending well beyond the 100 million euro mark. The breakdown is as follows:
Pepe: 30m, Drenthe: 18m, Sneijder: 27m, Robben: 36m, Heinze: 10m; Total: 121m.
Deducting the maximum of 11 million that they may net for Cicinho, it brings the total spending to 110 million euros. Javier Saviola, Christoph Metzelder and Jersy Dudek were signed on free transfers.
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