Bayern Munich have confirmed they have signed Renato Sanches from Benfica for an initial €35 million.
Portugal international Sanches, 18, passed his medical on Monday and signed a five-year contract at the Allianz Arena.
DONE DEAL! 18-year-old Renato #Sanches will join from Benfica this summer. Welcome to #FCBayern! pic.twitter.com/r9Xu7vOZOA
- FC Bayern English (@FCBayernEN) May 10, 2016
Benfica also confirmed the transfer in a statement, which read: "The Sport Lisboa e Benfica - Futebol, SAD announces that it has reached agreement with Bayern Munich for the transfer of Renato Junior Luz Sanches, for the amount of €35,000,000 (thirty five million).
"The agreement includes additional amounts, with a total amount of €45,000,000 (forty-five million euros), dependent on the achievement of goals until June 30, 2021."
Bayern CEO Karl-Heinz Rummenigge said there had been plenty of competition for the midfielder, who had been strongly linked with a move to Manchester United in recent months.
"Renato Sanches was already scouted by FC Bayern Munich for a longer period of time," Rummenigge said in an official club press release. "We are delighted to have signed him for our club despite notable international competitors.
"Renato is a dynamic, ball-winning and technically adept midfielder who will reinforce our squad."
Bayern's deputy CEO Jan-Christian Dreesen added: "The transfer fee for the national team player, who last night was named 'Newcomer of the Year' [Revelacao do Ano] in his country, amounts to €35 million, excluding possible add-ons that for instance will be due for payment should the player be called up to the world XI or elected as the FIFA World Footballer of the Year."
ESPN FC's Germany correspondent, Stephan Uersfeld, contributed to this report.