Real Madrid have completed the transfer of Gareth Bale on a six-year deal, according to Spanish sports newspaper AS.
According to club sources, the Spanish club will pay Tottenham 84 million euros for the Wales international plus an extra seven million euros in add-ons - equivalent to £78m.
The price Madrid will pay for Bale falls short of the £84m they laid out for Cristiano Ronaldo in 2009, although neither Real Madrid nor Tottenham have disclosed the final price.
Andre Villas-Boas is convinced that Tottenham have what it takes to overcome Arsenal on Sunday as he prepares for his first north London derby without Gareth Bale. Spurs will have to do without their talisman on Sunday as he nears a world-record move to Real Madrid.
Tottenham have fared well without Bale so far, winning all four of their opening matches without conceding a goal following a summer spending spree that looks set to break the £100million barrier over the weekend.
Gareth Bale has agreed personal terms with Real Madrid ahead of his £86m record-breaking move from Tottenham, according to BBC reports.
It is claimed the Spanish giants are still in discussions over the fee for the 24-year-old forward, with a bid of £86m already submitted to Spurs.
In addition to the world-record offer, which beats the £80m paid by Real Madrid to Manchester United for Cristiano Ronaldo in 2009, the Spanish club have also made an alternative bid of £70m - a one-off bid for the Wales international.
Bale, who joined Tottenham in a £10m deal from Southampton in 2007, was named player of the year by both the Professional Footballers' Association and Football Writers last season after scoring 26 goals for Spurs.
He has been linked with a move to Real all summer, with Spurs manager Andre Villas-Boas saying on Wednesday the transfer "could happen very, very soon".
Jamaican sprint champion Usain Bolt has likened himself to Tottenham's want-away midfielder Gareth Bale, by saying they are both 'speed footballers'.
Bolt said: "If you're a good passer, it's much better. Speed also helps. If you can take [Gareth] Bale for instance, he's pretty good at speed football. So I've seen this and I've said you know what I could be a pretty good footballer.
"I've played football with my friends, I've played enough charity matches in Jamaica and I've done pretty well. So I think personally, there is a possibility I could play so at the end of my track career, I'd like to try and see if it could happen."
Bolt made the comments after meeting Fifa President Sepp Blatter who, knowing the athletics star is a huge football fan, invited him to visit Fifa while he was taking part in the Weltklasse Zürich 2013 athletics meeting.
The Spurs manager Andre Villas-Boas has confirmed that Gareth Bale is close to sealing a world-record move to Real Madrid.
"It could happen very, very soon," he said.
But Villas-Boas has warned that the Welsh star's failure to turn up for training for a second consecutive day "is not the correct behaviour. That is the position they chose to take and it's up to the club to decide if it's a fineable offence."
The Tottenham manager Andre Villas-Boas has said they don't want to sell Gareth Bale despite the club failing to qualify for the Champions League. It had been predicted that Bale would move to a bigger club who are in the competition, but Villas-Boas denied Spurs were planning to sell him.
Tottenham are away at Stoke on Sunday. They have to win to stay in the chase for Europe. And finishing fourth, would help keep their star player Gareth Bale at White Hart Lane.
UEFA have not yet commented on allegations of racist abuse in Italy, but a spokesperson has said the body would only be able to look in to the issue if it was mentioned in the match delegate's report, which is due to arrive today.
UEFA is expected to decide today on whether Inter Milan will face action after racist abuse appeared to be directed at Tottenham players in last night's Europa League tie.
Spurs lost the last-16 second leg but progressed to the quarter-finals on away goals after the tie finished 4-4 on aggregate.
However, the main talking point after the match revolves around the racist abuse directed at Tottenham players.
Monkey chants appeared to be aimed at several Spurs players, notably goalscorer Emmanuel Adebayor, while a fan was seen with an inflatable banana.
It is not the first time Spurs have had problems against Italian sides this season, with Lazio reprimanded for racist behaviour in both their Group J ties.
Inter have also recently been punished for racist abuse and manager Andre Villas-Boas expects governing body UEFA to act.
Andre Villas-Boas expects UEFA to take action against Inter Milan after their supporters appeared to racially abuse Tottenham players on Thursday night.
"It's a very sensitive situation," Spurs manager Villas-Boas said of the chanting. "UEFA set out to act on that situation.
"It was very, very easy to hear the chanting so I am sure that UEFA will act on it.
"It's difficult for Inter Milan because it is something that in some way has happened before.
"It doesn't mar the game but it is something that should have been avoided."