Los Blancos are understood to have forked out around £58million for the forward, who is contracted to them until 2025 to football club Real Madrid.
Jovic, 21, has agreed a six-year contract with the Spanish giants, while the move is subject to a medical,the player the next six seasons, until June 30, 2025.
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The La Liga outfit described him as a “powerful, technical and a great finisher” as they successfully managed to snare him away from Germany.
Jovic becomes Real’s third signing of the window, having pipped Manchester United to the signature of defender Eder Militao from Porto.
Brazil’s 18-year-old winger Rodrygo will also link up with the European giants from Santos.