Valencia close in on Real midfielder Gago
"Fernando Gago arrives this evening at the Hotel Valencia Palace after a pre-agreement was reached between Valencia, Real Madrid and the player himself," the La Liga side said on their official Twitter feed.
The 26-year-old Argentina international, who joined Real from Boca Juniors in 2007, is surplus to requirements at the Bernabeu and played last season on loan with AS Roma.
Spanish media reported Gago had agreed a four-year contract and would move for a fee of some five million euros.
Valencia finished third in La Liga last season and qualified for the Champions League group stages.