Manchester United assistant manager Carlos Queiroz has been confirmed as the new manager of Real Madrid after he was released by his Old Trafford employers this afternoon.
Queiroz was highlighted as the Spanish champions' number one target yesterday by Real president Florentino Perez.
Speculation had been growing throughout the day that Queiroz had been holding talks in the Spanish capital and the news of his appointment was confirmed on the club's official website, www.realmadrid.com.
Just minutes before Queiroz was confirmed in the Madrid post a statement from Manchester United confirmed his destination.
It read: "Manchester United have agreed to release Carlos from his contract so that he can join Real Madrid.
"We thank Carlos for his contribution to Manchester United's success last season and wish him well in his new job.
"A replacement for Carlos will be sought in due course."
Queiroz is likely to be unveiled at a press conference in Madrid later this afternoon.
He was has been hailed as a major factor behind United's defensive transformation and Real will be looking for him to do a similar job at the Bernabeu as the Spanish giants try to reclaim their European crown.
It was their Champions League semi-final exit to Juventus which proved to be crucial in the departure of coach Vicente del Bosque over the weekend, although, while surprised at the move, new signing David Beckham will welcome Queiroz's appointment after working so closely with him at Old Trafford.
Mike Phelan will almost certainly be asked to fill Queiroz's vacancy in the short-term, Ferguson is likely to look to appoint another coach with wider knowledge of the European game.
Past experience suggests Ferguson will take his time trying to find the right man and the identity of Queiroz's successor will catch everyone by surprise.
No-one predicted the arrival of Queiroz or predecessor Steve McClaren, who Ferguson recruited from Derby after an intensive search over a period of months during the 1999 Treble-winning campaign.