Radamel Falcao and Victor Valdes have both reportedly arrived in Monte Carlo to complete moves to Monaco.
Portuguese international Carvalho, now 35, has played for Porto, Chelsea and Real Madrid in an illustrious career and said he was happy to have signed a one-year deal with the club.
"I'm very happy to join AS Monaco," he said on the official website, "and be part of the new adventure. This is a new challenge for me."
Falcao, 27, is expected to sign for a French record fee of £51.3m while no fee has been listed for 31-year-old Valdes who has only one year left on his contract at the Camp Nou.
According to AFP, both players were due to have medicals on Tuesday - and Colombia striker Falcao has now reportedly passed his.
Falcao has long been linked with a move away from Atletico Madrid with Manchester City and Chelsea mooted as possible destinations.
However, it appears that Monaco have jumped to the head of the queue with the newly-promoted team having already recruited the likes of highly-rated Porto pair Joao Moutinho and James Rodriguez for a combined fee of around £60m.
President Dmitry Rybolovlev is highly ambitious, evidenced by his capture of the Porto pair, who are former team-mates of Falcao who has scored 32 goals in 36 appearances this season.
Valdes has asked Barcelona to grant him a free transfer from the club given he has spent the last 10 seasons in the club's first team squad but club officials are reportedly reluctant to allow this out of the precedent it may set for other players further down the line.
Monaco are at odds with French football authorities over tax exemptions but they have attracted many leading players helped by the fact that, under the principality's laws, foreigners do not pay tax on their wages.
The French League has ruled that the club must move their head office to France by the beginning of June 2014, meaning players would pay tax in France.
- Sports & Recreation
- Radamel Falcao
- Victor Valdes
- Real Madrid