The England midfielder, who if the deal ultimately costs £115 million with add-ons, will be the most expensive player in his nation.
In accordance with reports, the English international has agreed to a six-year contract with the Santiago Bernabeu.
Bellingham will be revealed as a Los Blancos player at a presentation on Thursday morning at 11am. Real Madrid will make an initial £88.5m payment for Bellingham.
Following three seasons, Bellingham departs from Dortmund; he most recently won the Bundesliga Player of the Year award.
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