Bayern Munich have reached an agreement with Shakhtar Donetsk to sign winger Douglas Costa, report German channel Sport1.
The German champions will pay a fee of £25 million for the Brazilian international, who is currently at the Copa America.
Costa has been regularly linked with a move to Manchester United over the past four seasons, with The Star reporting last summer he was keen to leave Ukraine amid the unrest in the country.
Sport1 report the official completion of a deal is expected shortly, with a four-year contract agreed for the 24-year-old.
The deal is evidence of Pep Guardiola adding depth out wide and putting pressure on Frank Ribery and Arjen Robben, who have both suffered with injuries in recent seasons despite their immense quality.
Guardiola is bidding to strengthen his side for a Champions League push next season, having won two Bundesliga titles in succession, but yet to reach the final of Europe's elite competition.
Shakhtar paid £7 million to sign him from Gremio in 2010, and he has gone onto win 11 trophies for the Ukrainian side. Last season he scored five goals and provided seven assists in all competitions.
Costa becomes the third most expensive Bayern signing of all time, behind Mario Gotze and Mario Gomez.