Beckham joins the Spanish champions on a four-year contract initially worth 25 million euros to Manchester United with a further 10 million euros to the club depending on appearances.

"The deal is expected to be completed in July, conditional upon approval by the boards of Manchester United and Real Madrid, and on the provision of satisfactory payment guarantees," the Premiership champions said in a statement.

"David Beckham has agreed personal terms with Real Madrid and expects to sign his new contract with the club on completion."

Peter Kenyon, chief executive of Manchester United, said: "While we are sad to see David go after so many great years at Old Trafford, we believe this is a good deal for the club, and we now look forward to building on the success of last season's championship title.

"We wish David all the best in his new career in Spain and thank him for his fantastic contribution to the team's achievements in the last decade."

The transfer fee will be paid in instalments -- 5.25 million pounds (7.5 million euros) on completion of Beckham's transfer, 12 million pounds (17 million euros) in instalments over next four years and 7 million pounds (10 million euros based on Real's performances in Champions League -- 875,000 pounds (1.25 million euros) every year they qualify, 875,000 pounds every year they reach the quarter-finals.

Real Madrid, whose president Florentino Perez said two months ago he would "never, ever" sign Beckham, apparently decided his celebrity status would transform Real into a global marketing power.

Perez denied he would ever sign Brazil World Cup star Ronaldo from Italian side Inter Milan.

Beckham will play alongside superstars Zinedine Zidane, Luis Figo, Ronaldo and Raul. However, Figo has now been linked with a move to Italian sides AC Milan or Inter Milan before splashing out 55 million euros in 2002.

Beckham, currently on a promotional tour of Asia hast having just returned from the United States, is expected to be unveiled at Real's headquarters on July 2 after undergoing a medical.

Manchester United are expected to step up their bid to bring Ronaldinho to Old Trafford and will use the rest of the money they receive for Beckham to strengthen their squad.

Beckham described his move to Real Madrid as a "unique and amazing opportunity".

Beckham said in a statement the lure of Champions League football was the key to his move to nine-times European champions Madrid.

"I recognise that this is an amazing opportunity for me at this stage in my career and a unique and exciting experience for my family," he explained.

"I know that I will always regret it later in life if I had turned down the chance to play at another great club like Real Madrid, which also has world-class players."

Beckham, who was also being chased by Barcelona, added: "I would like to thank other clubs who were interested in signing me including Barcelona and I wish them every success in the future.

"But I really want to play in the Champions League."

Beckham also made a point of thanking Sir Alex Ferguson, his manager at Manchester United.

"I would like to publicly thank Sir Alex Ferguson for making me the player I am today," he said.

"I will always hold precious memories of my time at Manchester United and Old Trafford as well as the players, who I regard as part of my family, and the brilliant fans who have given me so much support over the years and continue to do so."

Ferguson paid tribute to Beckham.

"I've known David since he was 11 years of age, and it's been a pleasure to see him grow and develop into the player he has become," he said.

"David has been an integral part of all the successes that Manchester United have achieved in the last decade.

"I would like to wish him and his family every success in the future, and thank him for his service to the club."

Real Sports director Jorge Valdano said he was "extremely pleased with David's arrival".

He told the club's official website: "It is a strategic signing that will contribute to the club and the team becoming more competitive."

Real Madrid coach Vicente Del Bosque added: "The acquisition of Beckham is in keeping with the philosophy of our president Florentino Perez since he arrived here.

"He's a football icon and a great player. He's a player that is not limited to one particular part of the field. He's a midfielder that can play in different positions."

In the last three years Real have held a virtual monopoly on buying the world's best players.

Zidane, Figo and Ronaldo, all winners of the World Player of the Year award, were bought a combined transfer total of more than 191 million euros.

Zidane is the most expensive player in the world. He cost Real 75 million euros when they signed him from Juventus of Italy in 2001. Figo cost them 62 million euros from Barcelona in 2000.