The La Liga giants will pay £64m to acquire the Portugal international before the European transfer window closes.
Fernandes has claimed that Sporting vetoed a deal with Spurs (opens in new tab) because the north Londoners did not meet the Portuguese outfit's asking price.
But the 24-year-old now looks set to swap the Estadio Jose Alvalade for the Santiago Bernabeu as Madrid prepare to complete the transfer.
Zinedine Zidane's side drew 2-2 with Villarreal this weekend, with Gareth Bale scoring twice before being sent off.
Why the English midfield stereotype is dead – as Jordan Henderson proves (opens in new tab)
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Greg Lea is a freelance football journalist who's filled in wherever FourFourTwo needs him since 2014. He became a Crystal Palace fan after watching a 1-0 loss to Port Vale in 1998, and once got on the scoresheet in a primary school game against Wilfried Zaha's Whitehorse Manor (an own goal in an 8-0 defeat).