Kylian Mbappe has agreed to take a massive pay cut to join Real Madrid this summer.

Madrid confirmed the signing of the World Cup-winner on on a five-year deal on Monday evening.

The striker will officially join the 15-time European champions on July 1, the day after his contract with Paris Saint-Germain expires.

The 25-year-old, who earns 25m euros net (£21.4m) in Paris, will clear 15m euros net (£12.8m) a season at Madrid, still making him the club’s top earner despite the huge salary cut.

Kylian Mbappe has agreed to take a massive pay cut to join Real Madrid this summer

Despite losing out in terms of basic wage Mbappe will be paid a sizeable signing on fee understood to be over 100m euros (£85.6m) and will keep an 80 per cent share of image rights on any new commercial deals he signs after becoming a Madrid player. This breaks from the normal 50-50 split the club usually imposes on new players.

Mbappe is expected to wear the no 9 shirt in huis debut campaign before taking the No 10 from Luka Modric when he departs in the following season.

Confirmation of the club’s capture of Mbappe ends their seven-year pursuit of the French World Cup winner. 

His decision to leave Paris for Madrid has been welcomed in the Spanish capital as the final piece in the puzzle for Ancelotti to lead a team that can dominate European football for the next decade.

La Liga have announced the latest salary caps for all Spanish clubs. The figures are calculated according to each club’s projected income and spending, and govern their dealings in the transfer market.

Real Madrid have been set the highest salary cap at 727m euros (£622.5m) meaning they can take on the signing of Mbappe without having to sell. The news was much worse for Barcelona whose salary limit has been set at just 204m euros.

This figure is around 200m euros (£171m) above their current wage bill and means they will have to sell players this summer in order to be able to bring new players to the club.