"It is correct that we are in friendly and final talks with Real Madrid and will hopefully reach an agreement in the next day or two," said Bayern finance minister Jan-Christian Dressen.
The club said that the 32-year-old Spaniard is in Munich to do his "pre-transfer medical." The summer transfer window closes in just three days time, so Bayern will be sneaking this transfer in before it shuts completely.
Several reports have speculated that the fee will be between €5 and €10 million. Alonso currently makes €6 million in annual wages, and Sid Lowe from the Guardian is reporting that the Spaniard will sign a two-year deal to complete the transfer.
The Bavarians have moved swiftly following the diagnosis of Javi Martínez's ACL tear just two weeks ago. They confirmed the transfer of AS Roma defender Mehdi Benatia on Tuesday, and now could add what could be Martínez's replacement just a few days later.
"We believe it is necessary [to sign Alonso] for our team, to meet the requirements of our fans and the club as a whole," sport director Matthias Sammer said to the club's website. "It was a purely sporting decision to help us immediately and raise our quality. Alonso’s constitution means he is capable of playing at the very highest level for at least another two years. We’re optimistic, and our squad will be in very, very good shape."
Alonso pitch time at Madrid has slowly dwindled, but he made 42 appearances in all competition in Real Madrid's Copa del Rey/Champions League double. He missed the beginning of the season with a metatarsal fracture, but played a full 90 minute shift in 26 appearances following his return.
The deal is not official yet, so continued developments on the transfer are soon to come.