Now Bayern have confirmed that the talented midfielder's transfer to the Bernabeu has been formally agreed.
"We thank Toni Kroos for his time in Munich, said Karl-Heinz Rummenigge, Bayern chief executive. "We have achieved great success with him here. We wish him and his family all the best in Madrid and with Real."
The 24-year-old, born in the old East Germany, who started his senior career with Bayern, has signed a six-year contract and will reportedly earn £5.3m a year after tax.
Kroos only had one year left on his contract so a player who scored two goals and claimed four assists in seven World Cup matches moves for an undisclosed fee which is reported to be just €25-30 million (£19.8-23.7m).
Spanish paper Marca reports Kroos will be presented as a Real Madrid player at 4pm UK time on Thursday.
The headline at the top of Thursday's edition reads: "The day of Kroos."
Real Madrid are expected to sell Germany team-mate Sami Khedira to find space in their squad for Kroos. Arsenal have agreed a fee with the Spanish club but reports on Thursday suggest Chelsea have made a late attempt to sign him.
Fabian Kunze, Eurosport Germany: "For Toni Kroos it is the logical next step in his career. He won three national titles, three national cups, the Champions League, the European Supercup and FIFA Club World Cup with Bayern and he is world champion - so why not move on, face new challenges? The club can compensate for his loss. In Thiago Bayern have one of the best midfielders in the world and with the Spaniard playing a bit more offensively, Bayern have the chance to move David Alaba from the left-back position into midfield and take over Kroos' position there. And to be honest, Kroos was not always as steady and reliable as he suggested at the World Cup. So from our point of view, it is a classical win-win-situation."
Jose Manuel Antequera, Eurosport Spain: "Real Madrid need a companion and future replacement for Xabi Alonso. When ‘14’ is not in the team, the football of Real Madrid is predictable and Bale, Cristiano and Benzema all suffer. The fans of Real Madrid is delighted with the signing of Kroos."
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