Real Madrid have edged out Liverpool to the signing of Inter Milan midfielder Mateo Kovacic, according to La Gazzetta dello Sport.

The Italian publication reports that Liverpool tabled a bid of €25 million for the Croatian, only to be trumped by an offer between €30-35 million from Real Madrid for the 21-year-old playmaker.

Amid rumors of his imminent transfer, the Croatia international was pulled out of Inter Milan’s friendly with AEK Athens earlier today.

Kovacic broke through at Dynamo Zagreb when he was just 16 years old and signed for Internazionale in 2013. However, after making only appearances for the Serie A side, and despite signing a new contract until 2019 last season, the player is set to trade the San Siro for the Santiago Bernabeu this week.

The talented midfielder is expected to be partnered with fellow countryman Luka Modric in the center of the pitch for Rafa Benitez’s side.

With Kovacic set to arrive in Spain, Real Madrid will reportedly look to deal midfielder Lucas Silva and/or Asier Illarramendi before the close of the transfer window.

Illarramendi wants more playing time but has been told by club officials that he is free to leave and fulfill his desire for first-team football with another side. While Madrid are reportedly speaking with several La Liga clubs about the possibility of loan move for Lucas Silva.

The Brazilian signed for Los Blancos in January 2015 but played just 427 minutes of soccer in nine appearances since arriving from Cruziero last season.