Transfer news: Bayern Munich set to complete signing of Xabi Alonso from Real Madrid

Xabi Alonso: Set to join Javi Martinez at Bayern Munich

Bayern Munich are on the brink of signing Xabi Alonso from Real Madrid, according to the Bundesliga club's financial director Jan-Christian Dreesen.

Dreesen said an agreement had been struck "in principle" with the Spanish club, with the 2010 World Cup winner due in Munich later on Thursday for a medical and to discuss terms.

The 32-year-old would become the fifth Spanish player on the Bavarians' books together with Pepe Reina, Juan Bernat, Thiago and Javi Martinez.

Shaqiri: Could leave Bayern

Bayern on Wednesday completed the signing of Mehdi Benatia from Roma for a fee of £20.7million and they were not expected to venture into the transfer market again this summer.

Alonso's arrival could see Xherdan Shaqiri seek a move away from the club.

The Switzerland international winger is attracting interest in Italy, with Juventus and Inter Milan both keen on the former Basel midfielder.