Manchester United have agreed a fee with Real Madrid for Argentinian defender Gabriel Heinze, just a day after a Premier League panel refused to allow the player move to Liverpool.

Real confirmed the news in a statement on their website, which read: "Real Madrid and Manchester United have reached an agreement for the transfer of Gabriel Heinze.

"The Argentinian, 29, will sign a contract for the next four seasons and will be immediately incorporated into Bernd Schuster's squad."

No fee has been confirmed for Heinze, although reports in the Spanish media suggest he will cost Real around €12 million.

Yesterday a league panel rejected Heinze's bid to force United to sell him to Liverpool. The 29-year-old claimed United had written a letter allowing him to leave if another club offered a fee of £6.8million.

The panel backed United, who maintained they made it clear to the player both orally and in writing that he would not be permitted to join one of their title rivals.

Heinze is appealing against the decision but it now seems if he is intent on leaving Madrid is the best offer. West Ham could match his wage demands and are watching with interest to see the outcome of his appeal.

It emerged today that Heinze's representatives tried to bypass United's block on a Liverpool deal by engineering a move to Crystal Palace first.

Under the proposal made to Palace, the Argentina defender would have first been bought by the south London club and then sold on to Liverpool.

The bid was revealed in evidence given to a Premier League panel earlier this week by Palace chief executive Phil Alexander.

It is understood Alexander confirmed to the panel that a proposed scheme had been put forward by Heinze's representatives to secure the eventual transfer of the defender to Liverpool by initially transferring him to Palace.

Liverpool manager Rafael Benitez today reacted angrily to the panel's decision to block the move.

Benitez said: "I would like to ask the Premier League a number of questions. How can a player with a signed agreement be treated like this?

"He has a document which is clear, but the Premier League prefers to believe the word of someone else who made a mistake. I know there were accusations made against Liverpool in the hearing which were unbelievable. How can this be allowed?"