MADRID: Lyon announced on Wednesday the transfer of Karim Benzema to Real Madrid for 35 million euros in a deal which dashes Manchester United's attempts to capture the France striker.

In a statement the French club announced that the fee could rise to as much as 41 million euros depending on various bonuses attached to the deal.

Lyon, in a statement on their website, said they had accepted Benzema's decision after he had made it clear he wanted the deal to be "concluded quicker than initially envisaged".

"The club wishes Karim the greatest success with Real Madrid," the statement added.

The move was sealed after Real agreed to up its original offer from 32 million euros.

Spain's Radio Cadena Ser reported Benzema will sign a six-year contract with the Spanish giants.

This is the fourth signing by Real under the new presidency of "Galacticos" president Florentino Perez, after Brazilian midfielder Kaka, Portuguese winger Cristiano Ronaldo and Spanish defender Raul Albiol.

After Kaka was presented to fans at the Bernabeu stadium on Tuesday evening, Perez told Spanish radio that the next signing would be announced "today or tomorrow."

Real have been keen on Benzema since negotiations broke down with Valencia for Spanish international David Villa.

The former France and Real star Zinedine Zidane, who is now a senior advisor at the club had recommended Benzema to Perez, Spanish media said.

Benzema has played at the seven-time French champions since 2004, where he was top scorer in the French league in 2007 and 2008.

Lyon said last week that it wanted to keep him for another year.

Real also has its eye on another France international, Bayern Munich midfielder Franck Ribery.