Real Madrid will pay Palmeiras’ €72 million asking price for Endrick, but will sign him in 2024.
The LaLiga side will pay the transfer fee in instalments until the striker makes the transfer in July 2024 when he turns 18 and will be eligible to move abroad, GOAL can confirm.
Madrid have been leading the race to sign Endrick for some time, with Barcelona and Paris Saint-Germain also showing interest in the teenager, who has scored three goals in seven senior appearances for Palmeiras.
However, Endrick has not yet been told about a possible deal with Madrid.
Part of his entourage travelled to Qatar for the World Cup and will return when the competition ends on December 18.
Palmeiras will earn €60m (£52m/$63m) tax free from the sale of Endrick as Madrid have agreed to pay €12m in transaction taxes.