Liverpool agree Alonso sale
The deal is now subject to Alonso passing a medical on Wednesday.
A statement on Liverpool's website added: "The terms of the deal will remain confidential and undisclosed."
Real Madrid have been courting Alonso for much of the summer, and he is set to join the likes of Cristiano Ronaldo, Kaka and Karim Benzema at the Bernabeu.
most consistent
Manager Rafael Benitez was keen to keep hold of the Spain international, who he signed from Real Sociedad in 2004.
Alonso has formed an impressive central midfield partnership with Javier Mascherano and was one of the club's most consistent performers last season
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