The Serbia international has been tied to a long-term deal at the Santiago Bernabeu after completing a big-money switch from Eintracht Frankfurt.
The 21-year-old Serbia international emerged as one of the most sought-after talents in European football during the 2018-19 campaign.
His return of 27 goals in 47 appearances attracted plenty of attention, with Real one of several sides to cast admiring glances in his direction.
Those at the Santiago Bernabeu have now won the race for the forward’s signature, with Jovic tied to a deal through to the summer of 2025.
A brief statement from the Liga giants on their official website read: “Real Madrid CF and Eintracht Frankfurt have agreed to the transfer of player Luka Jovic, pending a medical examination.
“The player will be tied to the club for the next six seasons, until June 30, 2025.”
Real were expected to spend big this summer after enduring a testing 2018-19 campaign.
It is suggested that they have parted with around €70 million (£62m/$79m) in order to bring in Jovic.
They had to dig deep to get a deal over the line as Eintracht only recently pushed through a permanent deal of their own for the promising frontman.
An immediate profit has been made, although those in Germany are disappointed to be bidding farewell to the player who impressed so much during his time in the Bundesliga.
Frankfurt’s sporting director Fredi Bobic has said: “Luka Jovic is a big loss for us.
“His explosiveness and scoring skills have spread throughout Europe and we’ve benefited not only from his goals over the past two years.
“But for us it was clear that there is a financial pain threshold.
“For Eintracht Frankfurt this is a good and important transfer. We wish Luka only the best for his future.