Colombian international James Rodriguez has agreed to a six-year-contract which will see him earn around six million euros a year.
Sports newspapers Marca and AS said Madrid agreed to pay Monaco $108 million for Rodriguez.
James Rodriguez, the Colombia striker who was the top scorer at the World Cup, is closing in on a deal with Real Madrid.
Spanish forward Alvaro Morata has completed a USD 20 million transfer from Real Madrid to Juventus.
Germany midfielder Toni Kroos has joined Real Madrid from Bayern Munich on a six-year contract.
They were followed by La Liga rivals Barcelona at $3.2 billion and Premier League club Manchester United at number three at $2.81 billion.
After winning the World Cup at the Maracana Stadium, Germany's Toni Kroos announced that he will move to Real Madrid.
Hierro returns to Madrid 11 years after surprisingly exiting alongside former coach Vicente del Bosque.
Former Real Madrid great Alfredo Di Stefano, 88, has died in a Madrid hospital two days after suffering a heart attack, the club said.
Former Real Madrid legend Alfredo Di Stefano is in an induced coma in a Madrid hospital after suffering a heart attack on Saturday afternoon.
Real Madrid say Zidane will coach their B team next season after the French great spent the last campaign as Carlo Ancelotti's assistant with the first squad.