Respected German news source Sport1 says Bayern have reached an oral agreement with Shakhtar and that official confirmation of the fourth biggest transfer in German football history is expected shortly.

Premier League How Manchester United could benefit from transfer chaos at Real and Arsenal 25/06/2015 AT 10:53

Costa, 24, has been repeatedly linked with a move to one of Europe’s biggest clubs in recent years with Manchester United and Chelsea among the group of clubs interested in the Brazil international, who is currently at the Copa America.

But it seems Bayern have got their man on a four-year contract.

Last week, Costa did not deny to Sport1 that he had had contact with Bayern, saying: “I have been working for many years to play for a big club in central Europe. And if this possibility exists, then I would be very happy.”

Costa can play on either side of the attack and will be seen as a long-term successor to either Franck Ribery or Arjen Robben, both of whom are the wrong side of 30 and suffered with injury problems last season.

He joined Shakhtar in 2010 from Gremio and has scored 37 goals in 196 games for the Ukrainian club.

Liverpool made Roberto Firmino the most expensive player in German history on Wednesday when announcing a €41m deal to sign him from Hoffenheim, but the only other two deals to exceed the fee to be paid for Costa were Bayern’s captures of Javi Martinez from Athletic Bilbao (€40m) and Mario Goetze from Borussia Dortmund (€37m).

Brazil's national team player Douglas Costa (R) speaks next to teammate David Luiz during a news conference in Porto Alegre, Brazil, June 11, 2015 Image credit: Reuters

EXPERT ANALYSIS

Fabian Kunze, Eurosport Germany: "He is a young but experienced player (having played 34 Champions League matches) who could probably replace Robben or Ribery or would be at least a good backup for the two injury-prone wingers. So a transfer like this would totally make sense for Bayern - and if they can’t swap Schweinsteiger for Di Maria he could be first choice."

Premier League Man Utd transfer news: Schweinsteiger 'to be swapped for Di Maria' 25/06/2015 AT 10:10