Rafael Benitez will make the winger his first signing since taking over as coach after the player enjoyed a bright 2014-15 season with Sergio Gonzalez's men
Espanyol president Joan Collet has revealed that his club and Real Madrid have reached an agreement which will see Lucas Vazquez return to Santiago Bernabeu.
The winger came through the Real Madrid youth system after joining the club at the age of 16, but he was sent to Espanyol last season.
The 23-year-old scored three and set up a further six goals in 33 La Liga appearances and the Catalan club wanted to activate its option to buy his contract outright, although Madrid held an option to buy him back either this summer or next year.