Real Madrid reach 'agreement in principle' with Monaco for £161m transfer of Kylian Mbappe

Real Madrid have reached an "agreement in principle" to pay Monaco up to €180m (£161m) for Kylian Mbappé, according to reports in the Spanish capital.

The transfer, should it be completed, would become a world record, eclipsing the £89m fee paid by Manchester United for Paul Pogba last summer.

Madrid have agreed to pay €160m plus another €20m in performance-related bonuses for the 18-year-old striker, Marca report, though Monaco say that as yet they have not agreed a sale.

Mbappé would be expected to sign a six-year deal at the Santiago Bernabeu where he would earn nearly £200k per week after tax.

Monaco had been holding out for €190m and had threatened to report Mbappé's suitors to Fifa for unauthorised contact with the player.

But Real Madrid sat down with the Ligue 1 champions last week and began negotiations over a price as Florentino Perez continues to buy up the best young talent in Europe.

Should the deal be completed, Monaco will have made an unprecedented £300m in transfer fees this summer.

Manchester City, Liverpool and Arsenal all had interest in the French teenager but it was clear from the beginning of the off-season that, were he to leave Monte Carlo, it would be for Madrid.

Mbappé is known to have made certain demands about playing time, but the departure of Alvaro Morata should ease his mind.

Over £100m of the Mbappé fee has been raised in the last week by selling Danilo to Manchester City and Morata to Chelsea.