Real Madrid have agreed a deal to sign teenage midfielder Sergio Canales from Racing Santander, the club announced.

The 18-year-old Canales has announced himself as a major talent for the future since coming through Racing's ranks, scoring five goals in 11 appearances for the first team this season.

That form saw him linked with several of Europe's top clubs in January, but while he stayed put last month, he will be moving on in the summer.

"Real Madrid C.F. and Racing de Santander have reached an agreement for the transfer of the player Sergio Canales Madrazo," said a Real Madrid statement this evening.

"The contract, which will link the player to Real Madrid CF over the next six seasons, will enter into force from 1 July 2010."

No fee was announced by either club.