The Austrian has reportedly agreed to a four-year deal with the Spanish giants.
It is also added that the 28-year-old has agreed to a four-year contract with the Spanish capital club.
Alaba was understood to be on the radar of Europe’s heavyweights after Bayern CEO confirmed that the Austrian would be available on the transfer exchange.
With his contract expiring at the end of this season and after Bayern failing with their attempts over a new deal, Alaba became one of the sought-after players in the market.
Now, Madrid have won the race for the acquisitions of the Austrian defender, who will be considered as an integral part of Zidane Zidane’s side to bolster the back-line.
Perhaps, Alaba’s desire to represent Los Blancos proved to be decisive in his pursuit.
However, his arrival would not have any consequences on club captain Sergio Ramos, whose future at Bernabeu is hanging in balance, with his contract expiring in the summer.
Madrid are still working to find a breakthrough in the negotiations over a new deal with the Spanish defender, who has been monitored by the likes of PSG and Tottenham.
With the acquisition of Alaba, Madrid can steady their defence as they will have an experienced line up consisting of Ramos, Alaba and Raphael Varane.
Zidane’s men, who got knocked out of Spanish Super Cup in the semi-finals against the eventual title winner Athletic Club, will now turn their focus towards Wednesday’s Copa del Rey fixture against Alcoyano.