Real Madrid are closing on an agreement with Borussia Dortmund for England star Jude Bellingham.

Talks are at an advanced stage for the 19-year old who had been the most coveted of transfer targets this summer.

Liverpool ruled themselves out of the running last month with the cost of the fee plus wages, reputedly of around £400,000 a week, too much for them to consider.

Manchester City and United also wanted Bellingham but Madrid have moved to the fore after talks in recent weeks with a delegation travelling to Germany last week. 

They are continuing discussions with their Dortmund counterparts over the final fee and bonuses but believe they are within reach of finalising terms.

Jude Bellingham is closing in on sealing a sensational summer switch to join Real Madrid

Bellingham's arrival would complete one of the best midfields in world football as Madrid look to smooth the transition to a younger side centred around Luka Modric and Toni Kroos.

The teenager was the stand-out player for England at the World Cup in Qatar last year and has been on a tear in Dortmund this season in the Bundesliga.

Real previously sent a representative from the club to meet with Bellingham in a bid to persuade him to become the first English player to represent the club since David Beckham in 2007 - and it appears they are close to sealing a move.

Mail Sport reported last month that Real Madrid are prepared to do whatever it takes to win the race to sign Bellingham.

It was revealed that Real have been prepared to strain every financial sinew to pay a transfer fee which could rise to as much as £130m.

Real know they cannot compete with City when it comes to wages and retained hope Bellingham would not simply opt for the highest financial package on offer. It appears their efforts are about to be rewarded.

Madrid's Director General Jose Angel Sanchez and chief scout Juni Calafat identified Bellingham as the club's top target at the start of the season and his performances at the World Cup only stiffened their resolve to sign him.

Club officials also had conversations with the player's father Mark, who passed his FIFA agents exam last week, in a bid to boost their bid, while former Real Madrid boss Zinedine Zidane, also one of Bellingham's idols growing up, also invited him and his family to his box at the last Champions League final as part of the process.

The Spanish club's entire summer planning has been on hold while a deal for Bellingham has been worked out. 

Luka Modric has still not been offered a new contract because signing the Dortmund midfielder would take precedence over renewing the 37-year-old for one more year.

Sources in Madrid suggest Bellingham would be offered Modric's £18m basic gross salary in his first season – and, potentially, the Croat's No 10 shirt.

Birmingham City, where Bellingham came through, are due 15 per cent of any sell on fee.

Bellingham is currently enjoying the most prolific season of his career in the Bundesliga, notching five goals and five assists in 29 appearances.

Edin Terzic's side currently sit second in the German top flight one point behind Bayern Munich with four games remaining.