Real Madrid reportedly edged Manchester United in the bidding war for Toni Kroos as reports indicated that the Bayern Munich midfielder will be moving to Bernabeu next season.

Marca reported that Real Madrid and Kroos' representatives have already agreed to a deal in principle, and are on the verge of finalizing the transfer details.

"Real Madrid have signed Toni Kroos. The Bernabeu outfit has reached a deal with Bayern to sign the midfielder. With just a few minor details to iron out with regards to add-ons, a deal was done for €25m. MARCA reported exclusively on Monday that Real Madrid and Bayern Munich were negotiating a deal for Kroos," Marca reported.

The 24-year-old midfielder has been on Real Madrid's radar over the past several months, and they were optimistic that they could get him from Bayern Munich after the German club failed to convince Kroos to sign a new deal.

According to reports, Bayern Munich offered a new deal to Kroos, who still has one year left in his contract. The German side was forced to give Kroos up instead of losing him on a free transfer once his contract runs out after next season.

Kroos recently talked about his contract situation with Bayern Munich, but he insisted that any possible deal will only be finalized after the 2014 FIFA World Cup.

"I've got a contract with Bayern until 2015 and over the last five months I've had plenty of similar situations. When it's not Real, it's United. They're great teams, just as Bayern is. If there's a decision to be made, it'll be after the World Cup" Kroos said in an Express interview.

Manchester United, who have been considered as favorite to land Kroos since the January transfer windows, are now expected to shift their attention to their other targets, which includes William Carvalho and Juan Cuadrado.

Mirror.co.uk reported that Sporting Lisbon are willing to move Carvalho to Manchester United, but the club is asking for a hefty £37 million fee.

Manchester United, who are aiming to bounce back from a disappointing performance last season, are also reportedly interested in Colombia winger Juan Cuadrado.

New Manchester United manager Louis van Gaal is reportedly preparing a £32-million bid for Cuadrado, who has been one of the main reasons why Colombia reached the quarterfinals of the 2014 World Cup in Brazil.

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