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The long running saga has finally come to a close with the French champions accepting Madrid's latest offer and he will undergo a medical and sign a contract in the next few days.

Lyon posted the news on their official website and Los Merengues's president, Ramón Calderón then confirmed the deal on Radio Marca on Friday evening.

Negotiations between the two clubs looked to have reached an impasse when the French outfit stated that they were holding out for €35 million and rejected an offer of €20 million from Madrid.

While the talks were continuing, Diarra threatened to go on strike in order to push a move through and made regular statements in the media about his desire to move to El Bernabéu.

Fabio Capello made no secret that another midfield player was his priority and that Diarra was his preferred target, although he refused to speculate on whether a deal could be reached.

Since taking over for a second spell at Madrid, the Italian coach has signed Fabio Cannavaro and Emerson from hisformer club Juventus as well as capturing Ruud Van Nistelrooy from Manchester United.

Diarra spent four years with Lyon and was an inspiration as they won the league every year he spent at the club after joining from Vitesse Arnhem.

Manchester United were said to be interested in the player, but the high price tag saw Alex Ferguson turn his attention elsewhere.

[KillerMax]

News already posted. And this is not Milan news.