MADRID (AFP) -- Real Madrid are close to signing Manchester United's Argentine defender Gabriel Heinze for around 12 million euros, Spanish sports daily Marca reported Wednesday.

The two clubs reached an agreement in principle for the transfer of the 29-year-old on Tuesday, the newspaper said.
Six-time French champions Lyon, who are looking to fill the void left by Brazilian center-back Cris who has been ruled out for six months with a knee injury, have also made a offer for Heinze worth nine million euros, it said.
Heinze is eager to join Liverpool but his wish has been firmly rebuffed by the Premier League champions.
The player took his case for a move to Liverpool to the Premier League on the grounds that he had a letter from Manchester United chief executive David Gill which said he could leave Old Trafford for 6.8 million pounds.
But a three-member Premier League panel has ruled that the letter did not constitute consent for Heinze to leave and the player now feels he has no future left at the English club.
""This is not a war but I have to consider my stay at Manchester United is finished,"" he said in an interview published in British newspaper Daily Mirror on Wednesday.
""I am not anti-United but I only wanted to defend my right to search for another club without restriction,"" he added.
Heinze said he has never spoken to clubs in Spain, France or Italy and was still hoping to join Liverpool.
""I have never spoken with clubs in these countries because in my head the only option is Liverpool. My hope was to negotiate a transfer to Liverpool but, unfortunately, the Premier League decided in favor of United,"" he said.
""The decision is a painful one but my lawyers are still searching for a solution, one that is favorable to all parties,"" he added