Borussia Dortmund are set to sign defensive midfielder Immanuel Pherai from AZ Alkmaar, the club has confirmed to ESPN FC.
Pherai, 16, is represented by Mino Raiola, and is reported to have signed a three-year contract with the Bundesliga side.
"We reached an agreement yesterday. I will join BVB," Pherai was quoted as saying by azfanpage.nl on Wednesday.
On Thursday, Lars Ricken, the head of Dortmund's academy, told ESPN FC: "We've reached an agreement in principle but since it's a transfer of an underage player it still needs to be validated by FIFA."
The process is expected to be similar to that involved in the signing of Alexander Isak earlier this year.
Raiola's visit to Dortmund's club offices on Tuesday, only hours before the official unveiling of new head coach Peter Bosz, had led to speculation that Mario Balotelli could be headed to the Westfalenstadion on a free transfer with his Nice contract set to expire this month.
Meanwhile, Energie Cottbus are set to receive a 10 percent windfall from Dortmund's €20 million capture of Freiburg midfielder Maximilian Philipp.
Germany under-21 international Philipp, 23, became BVB's fourth signing of the summer when agreeing to join the Bundesliga side on a five-year deal.
Having arrived at Freiburg from Energie in January 2013, Philipp's former club, which dropped to the regional fourth-tier last summer, will also profit from the transfer.
On Wednesday, Energie president Michael Wahlich confirmed in local paper Lausitzer Rundschau that the club will receive 10 percent of the transfer fee.