Milan claim victory in Ronaldinho race

The 28-year-old Brazilian is set to put pen to paper on a three-year deal at the San Siro subject to passing a medical later, finally ending City's audacious bid for his services.

Barca confirmed in a statement on their website that the initial transfer fee was £16.7million, a figure which could rise to the full £19.8million pending additional payments.

The statement read: "The principle of agreement finally established a transfer fee of 21 million euros (£19.8million), plus four million euros (£3.1million) more in the form of performance-related bonuses depending on AC Milan's qualification, in future years, for the Champions League.

"(Barcelona) sporting director, Txiki Beguiristain, announced that this agreement in principle was reached thanks to the player renouncing his right to 15% of the fee."

The projected fee is nearly £8million less than was reportedly being offered by City, who were Milan's only rivals for the signature of the two-time World Player of the Year.

The agreement followed a day of talks between Barca president Joan Laporta and Milan vice-president Adriano Galliani in the Catalan capital.

Ronaldinho reportedly travelled to Milan on Tuesday evening, and the Italian club confirmed the the deal now hinged only on the Brazil international successfully completing a medical.

"AC Milan and FC Barcelona have reached a principle agreement for the transfer of Ronaldinho to the Rossoneri," read a short statement on www.acmilan.com.

"The player will be tomorrow in Milan to undergo the medical examinations and sign the contract that will bind to Milan until June 30, 2011."